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Inflation records second consecutive uptick

Inflation records second consecutive uptick

The annual inflation rate ticked up to 2.7% in January, following the 2.4% increase in prices recorded in December, the Namibian Statistics Agency reported.

Overall consumer prices increased by 0.9% during the month under review, with prices for goods increasing by 3.2%, while prices for services increased by 2%.

During January, prices for food and non-alcoholic beverage prices increased by 5.2%, moderating from the 7.6% recorded in December. The largest increases were observed in the fruit and vegetable prices, at 13.6% and 12.4% respectively. Fish prices saw a marginal price decrease of 0.3%.

Meanwhile, alcohol and tobacco prices, made up approximately 12.6% of overall inflation, being the second highest contributor to the annual inflation rate in January. Tobacco prices increased by 10.3% while alcohol prices rose by 3.8%. Financial services sub-category recorded a rather hefty price increase of 27.2% in January.

Despite this consecutive uptick, Namibia’s annual inflation rate continues to trend lower than that of neighbouring South Africa, which stood at 3.1% in December 2020.

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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