Retail sector to remain under pressure over time as deflation persists – experts
Research firm, Simonis Storm Securities this week following the release of the inflation numbers for July 2018, believes that retailers will remain under pressure over time as deflation persists in the clothing and furnishing categories.
According to the analysts at the firm over the last five years clothing inflation only increased by 0.7%. July 2018 marks the 11th month of deflation within the clothing category mainly seen in girls’ clothing (-16.9%), children’s clothing (-9.5%), adult footwear (-8.0%) and women’s clothing (-7.0%).
Meanwhile, the released the inflation numbers for July 2018 by the Namibian Statistics Agency said that on an annual basis, overall inflation increased at a slower pace of 4.5% in July 2018 compared to 5.4% recorded in the prior year.
The annual increase can be ascribed to the rising inflation in transport, alcoholic beverages, education and the hotel, café and restaurant categories. YTD (Jan- Jul) inflation averaged 3.7% and the experts at the research firm expect it to average 4.1% at the end of the year.