Annual inflation rate hits 6.8% – Rate expected to remain elevated says expert
The inflation rate rose 6.8% year on year in July compared to 4% recorded in July 2021, Namibia Statistics Agency (NSA) said this week.
“This is the highest inflation rate recorded since April 2017,” the agency said in the Namibia consumer price index (NCPI) report released Thursday.
Transport and food and non-alcoholic beverages components continued to be the main contributors to the annual inflation rate with a contribution of 3 percentage points and 1.5 percentage points, respectively, the agency added.
On a monthly basis, the inflation rate remained unchanged at 1 percent when compared to a month earlier.
According to the NCPI, the increase in the transport component was mainly reflected in the price levels of operation of personal transport equipment which increased by 35.5%.
While the inflation rate for the food sub-category increased by 8.4% during July 2022 compared to 6.5% registered during the same period of the preceding year.
The increase was mainly reflected in the prices of oils and fats (from 17.4 to 26.5 %); fruit (9 to 24.5%); and sugar, jam, honey, syrups, chocolate, and confectionery (from -0.4 to 9.2%), the NSA noted.
Investment research firm, Simonis Storm Securities Economist, Theo Klein meanwhile said, while there are several deflationary pressures globally, Namibia’s inflation is expected to remain elevated for the next couple of months, owing to international price pressures that are delayed in filtering through to Namibia and due to South Africa’s Rand weakness.
“Food inflation appears to decline globally, albeit increasing at a decreasing rate, and this can take some time to lower food price inflation rates in Namibia,” he concluded.