Annual inflation rate decreases notably in December 2023
Annual inflation rate in December 2023 witnessed a notable decrease, standing at 5.3% compared to the 6.9% recorded in December 2022, according to Namibia’s consumer price index, the main gauge of inflation released by the statistics agency (NSA) this week.
NSA Statistician General, Alex Shimuafeni in a statement pointed out that on a monthly basis, December 2023 saw a deflation of 0.1 percent, a decrease from the 0.3% recorded in the preceding month.
According to Shimuafeni, the breakdown of zonal inflation rates for December 2023 highlighted distinctive trends across the regions.
Shimuafeni said Zone 1, encompassing Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi regions, reported the highest annual inflation rate at 5.9 %. Zone 2, covering the Khomas region, followed closely with a 5% inflation rate, while Zone 3, which includes Kharas, Erongo, Hardap, and Omaheke regions, recorded an annual inflation rate of 4.9%.
Shimuafeni also delved into analyzing average retail prices for selected products in December 2023.
According to Shimuafeni, analysis of the average retail prices of selected products for December 2023 revealed that consumers in Zone 2 paid the highest price for cooking oil (750 ml) at N$37.63 followed by Zone 1, N$31.11, while consumers in Zone 3 paid the least price of N$30.12.
“For honey (500g) consumers in Zone 2 paid the highest price of N$107.41 followed by Zone 3 at N$90.63, while Zone 1 paid the lowest price of N$82.75,” he concluded.
Meanwhile, Investment research firm Simonis Storm Securities in an analysis said that given the observed data and current economic indicators, they project that inflation rates will continue to show a downward trajectory in the forthcoming year.
“For the fiscal year 2024, we are forecasting an average inflation rate of approximately 4.9%. This forecast is underpinned by our expectation of persistently lower petrol and food prices, coupled with a stable Rand, especially in the first quarter of 2024. These factors are anticipated to be key drivers in moderating headline inflation in Namibia,” the firm said.
