Overall inflation rate increases during December 2020 – Money and Banking Statistics
The annual inflation rate stood at 2.4% in December 2020, relative to 2.2% recorded in the preceding month, according to Bank of Namibia statistics released on Monday.
The central bank said the main contributors to the rise in inflation were food & non-alcoholic beverages, alcoholic beverages and tobacco, and education during the period under review.
The Money and Banking Statistics for December 2020 also stated that during the month, credit extended to businesses recorded negative growth of 1.2% compared to positive growth of 1.6% a month earlier.
“The contraction emanated from negative growth rates in the asset-backed credit facilities (i.e mortgages and installment and leasing) reinforced by slower growth in other loans and advances as well as overdraft credit as domestic economic activity remains subdued,” the central bank stated.
Meanwhile, the bank said growth in credit extended to the private households increased somewhat in December 2020.
“The 12-month growth in credit extended to households rose to 4.5% at the end of December 2020, from 4.2% at the end of November 2020. The marginal increase in household credit was sustained by a relatively higher uptake of mortgage credit during December 2020, amid slowdowns registered in most household categories during the period under review,” they added.
In terms of foreign reserves, the central bank said the stock rose to N$31.8 billion at the end of December 2020 due to net inflows of Rand currency from commercial banks during the period under review.