Headline inflation turns up but overall inflationary pressure remains subdued
According to the latest statistics from the Namibian Consumer Price Index, released this week by the Namibia Statistics Agency, headline inflation has posted a comeback from its historical low of 1.6% in April, to 2.1% in May.
Despite the noticeable shift in the inflation trend, the annual reading measured monthly, is still only about half of the inflation in May 2019 when the reading was 4.1%. This is indicative of a turn in the overall inflation trend but lacking any strong underlying inflationary pressures going forward.
“In May 2020, the annual inflation rate slowed to 2.1% from 4.1% in May 2019 while on a monthly basis, the inflation increased to 0.4% from minus 0.3% in April 2020. The slow growth in the annual inflation in May 2020 was largely attributed to Housing, water, electricity, gas and other fuels category (from 1.9% to minus 0.6%); and Transport (from 7.6% to minus 0.1%),” said the Statistician General, Mr Alex Shimuafeni.
This Housing decline was mainly the result of decreases in rent which declined by 4.6% and regular maintenance and repair of dwellings which declined by 3.4%.
During the period under review, the regions Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi recorded the highest annual inflation rate of 2.3% while the Khomas, Karas, Erongo, Hardap and Omaheke regions registered inflation rates of 1.9%.