Headline inflation unmoved at 4.5% in March
The headline inflation rate was unchanged in March at 4.5%, but upward adjustments in Namibian fuel prices and higher global food prices are expected to drive inflation significantly higher in the coming months.
This is according to the latest Consumer Price Index released by the Namibia Statistics Agency. The March 2022 inflation is a significant increase from the 3.1% recorded in March 2021. Monthly, the inflation rate stood at 0.5% compared to 0.2% recorded in February on the back of price increases in transport, food and non-alcoholic beverages.
PSG Research analyst, Shelly Louw said as expected, there was another round of hefty upward adjustments to domestic fuel prices in April due to rising Brent oil prices. Consequently, fuel prices have risen by nearly N$3.5/litre since the start of the year.
“Transport price inflation will likely remain near double digits throughout most of the year due to the above-mentioned increase in fuel prices. Additionally, the prices of wheat, maize and fertilisers have also surged in the wake of the Russian invasion, which will exert upward pressure on food price inflation,” Louw added.