Inflation surges to 3.8% in May
The annual inflation rate increased by 3.8% in May 2021 compared to 2.1% recorded in May 2020, the Namibian Statistics Agency said.
The Statistics Agency said this was a decrease of 0.3% on a monthly basis, compared to 0.4% recorded a month earlier. In April, the inflation rate stood at 3.9%.
“The main contributors to the 3.8% annual inflation rate were food and non-alcoholic beverages and transport,” Alex Shimuafeni said.
Food and non-alcoholic beverages which accounts for 16.5% of the consumer basket increased by 6.6% in May 2021, while transport which accounts for 14.3% of the basket of goods and
services was 7.3% more expensive than a year ago.
Other main categories based on the consumer basket weight such as alcoholic beverages and tobacco which accounts for 12.6% increased by 3.5% while housing, water electricity, gas and other fuels which accounts for 28.4% increased by 1.3%.
Meanwhile, the Bank of Namibia is expected to make the next interest rate announcement on Wednesday, 16 June. The repo rate remains at 3.75%, currently set at a record low since the start of last year.
The market expectation is that the Bank of Namibia will keep the interest rates on hold, in line with its South African counterpart.