Central Bank revises overall inflation to 6.1%
The Bank of Namibia (BoN) on Wednesday said the overall inflation for 2023 has been revised upwards where it is projected to average 6.1% from a forecast of 5.3% previously.
The revision is attributed to the second round effects on food price inflation emanating from a weaker exchange rate, as well as the prolonged stubbornness in core inflation, BoN Governor Johannes !Gawaxab said at the monetary policy announcement in Windhoek.
!Gawaxab said Namibia’s average inflation rose to 7.1% during the first three months of 2023 compared to 4.5% during the corresponding period in 2022.
He said the rise in overall inflation was predominantly driven by food and transport inflation.
On a monthly basis, overall inflation though elevated, remained unchanged at 7.2% during February and March 2023, !Gawaxab said.
Meanwhile, the Monetary Policy Committee decided to increase the repo rate by 25 basis points to 7.25% to contain inflationary pressures and anchor inflation expectations.