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Headline inflation rate decelerated to 2.2% in November

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.


 

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys


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