Annual inflation up to 4.5% in December
The annual inflation rate rose to 4.5% in December, with prices increasing by 0.4%, according to the Namibia Statistics Agency.
Transport continues to be the largest contributor to annual inflation, with prices in this category increasing by 2.1% monthly, contributing 2% to the annual inflation rate. This was the largest year-on-year increase in fuel prices for 2021.
IJG Research forecast that global oil prices will continue to increase this year with some analysts predicting that a lack of production capacity and limited investment in the sector will result in demand outstripping supply.
“We thus expect fuel prices to remain elevated for the majority of 2022,” IJG noted.
Food & non-alcoholic beverages were the second biggest contributor to the annual inflation rate in December, contributing 0.9%.
