Headline inflation rate decelerated to 2.2% in November
The latest consumer price index released by the Namibia Statistics Agency shows that the headline inflation rate decelerated to 2.2% in November compared with the 2.3% reading recorded in October.
The largest increases were recorded in education and food non alcoholic beverages, while all components within the food basket saw price increases in annual terms, particularly
fruits, oil/fats, meat, sugar, syrups, and bread & cereal.
The biggest decreases were recorded in clothing footwear and housing utilities. Transport prices remained in deflationary territory, measuring -1.2% in November, unchanged from October.
Looking ahead, there are expectations for inflation to decline to 2.2% in 2020 from 3.7% in 2019 thanks to lower energy and food prices.
Research analyst at PSG Namibia, Shelly Louw said coupled with softer domestic demand and the slow transmission from the weaker exchange rate, inflation is expected to recover rather gradually over the medium term.
“We expect inflation to average 4% next year, rising steadily to an average of 5% in 2023,” Louw added.
Meanwhile, food price inflation is expected to remain moderate throughout 2021 on the back of favourable regional grain production.