CHAMWE KAIRA
The average cost of the First Capital Namibia food basket consistently rose from N$2,029.21 in the first quarter of 2022 to N$2,390.88 in the third quarter of 2022, with the third quarter of 2022 having the highest cost and a significant increase of 10.05%.
In 2023, the cost fluctuated, reaching its peak at N$2, 302.71 in the second quarter before slightly decreasing and then rising again to N$ 2,380.90 in the third quarter.
The percentage change in 2022 showed moderate increases in the first and second quarter, while 2023 experienced more volatility, with a notable decrease of 7.25% in the first quarter followed by positive changes in subsequent quarters.
First Capital Namibia said by the second quarter of 2024, the cost continued to rise, reaching N$2,410 with smaller percentage increases of 2.12% in the first quarter and 1.2% in the second quarter.
“Overall, there is a clear upward trend in the cost of the food basket from 2022 to 2024. Despite some fluctuations, this indicates that the cost of living related to food generally increased over this period,” the report said.
In terms of price trends for essential food items, the report showed that bread prices remained relatively stable, with a slight increase from N%14.11 to N$14.59, while meat prices saw significant increases, with pork chops rising sharply from N$57.99 per kg to N$115.19 per kg, and chicken increasing from N$103.99 per kg to N$122.19 per kg.
In contrast, mealie meal prices decreased steadily, with dropping from N$137.74 to N$112.49, as rice and macaroni prices trended upward, exemplified by Tastic rice (2 kg) rising from N$48.24 to N$54.19 and Polana Elbows (3 kg) from N$94.99 to N$104.39.
“Overall, the period witnessed a general increase in the prices of most essential food items, reflecting broader economic conditions such as inflation, supply chain challenges, and market demand,” the report said.
The First Capital Food Price Index is calculated using prices from the first quarter of 2022 as the base period. The index showed a general upward trend from the first quarter of 2022 to the second quarter of 2024, with some fluctuations. In 2022, the index increased from 100 in the first quarter to 118 in the third quarter, indicating a significant rise in food prices by the end of the year. The upward trend in the fourth quarters of the year can be attributed to high demand for food during festive seasons.
