The inflation rate for alcoholic beverages and tobacco stood at 6.9% in July 2023 compared to 5.4% registered in July of the preceding year
The increase in the annual inflation rate for this category resulted from an increase witnessed in the subcategory of alcoholic beverages which increased by 7.7% in July 2023 compared to 5.4% recorded in July 2022, figures by the Namibia Statistics Agency revealed.
The main products which pushed up the inflation rate for this subcomponent in July 2023 were sparkling wines/champagnes (from 1.2% to 10.6%); Wines (from 0.9% to 8.6%) and liqueurs (from -3.0% to 1.1%).
Annual inflation rate for tobacco stood at 3.5% during the period under review compared to 5.4% recorded in July 2022.
In the budget statement for the 2023/24, Minister of Finance and Public Enterprises, Iipumbu Shiimi, announced that a pack of 20 cigarettes increased up by 98 cents, a kg of cigars will cost an additional N$237.79, unfortified wine was increased by 24 cents per litre, fortified wine goes up by 41 cents per litre, sparkling wine will increased by 12 cents per litre, spirits would cost an extra N$12.08 per litre, a clear malt beer increased by N$5.99 per litre and ciders and alcoholic fruit beverages went up by N$5.99 per litre.
The Namibian market is forecasting slightly higher short-term inflation compared to expectations at the
start of the year.
“Interestingly, inflation expectations over the long-term (10 years plus) have decreased. We maintain our forecast of 5.9% for 2023 and 5.1% for 2024. In SA, the market is forecasting July 2023’s inflation figures to come in between 4.5% and 5.0% and this should not prompt any further rate hikes in South Africa and by implication Namibia. However, we do expect one more 25bps repo rate hike by the SARB to follow the Fed’s 25bps rate hike in July 2023,” the firm said.
