March inflation drops to 4.5%: NSA Consumer Price Index
The Consumer Price Index (CPI), a crucial measure of inflation, saw a notable decline to 4.5% in March, as revealed by statistics released on Tuesday.
This figure marks a substantial decrease from the 7.2% recorded in March 2023, according to data provided by the Namibia Statistics Agency (NSA), announced by Statistician General Alex Shimuafeni.
The decline in inflation was primarily attributed to decreases in the prices of food and non-alcoholic beverages, as well as alcoholic beverages and tobacco products, Shimuafeni highlighted in a bulletin.
The bulletin further detailed that the inflation rate remained steady on a month-on-month basis, with no change recorded, holding at 0%.
Analyzing specific sectors, NSA data pointed out a significant drop in prices of bread and cereals, which represent a substantial portion of consumers’ food purchases. In March 2024, these prices declined by 1.4%, in stark contrast to the 20.8% increase observed during the same period in 2023.
Meanwhile, local bank, FNB in an NCPI review anticipates a 4.9% headline inflate rate in April 2024 (previously 4.8%), with a 12-month average of 4.7% for 2024 (unchanged).
“This upward adjustment reflects the recent fuel price hikes implemented this month. Additionally, the rise in civil servant wages and the tax reforms enacted on 1 March 2024 are likely to support disposable income and increase consumer spending, which will potentially drive demand-side inflation,” they added.
Furthermore, the bank said, the downside risk to this view is the elevated interest rate environment which may dampen the impact of these demand-side inflationary pressures.
