CHAMWE KAIRA
The year on year inflation rate stood at 4.6% in July in the Khomas Region compared to 4.7% registered during July last year. The slowdown in the annual inflation rate emanated mainly from the slow increases registered in the price levels of ‘food and non-alcoholic beverages’ (from 10.4% to 4.8%); education (from 4.5% to 0.6%); and ‘miscellaneous goods and services’ (from 4.4% to 1.6%).
For the compilation of inflation, the Namibian Statistics Agency has grouped the country into three zones. Zone 1 is made up of (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi). On a monthly basis, the inflation rate registered 0.0% compared to a decrease of 0.2% recorded during the preceding month.
In Zone 2 (Khomas), year on year inflation rate for the period under review increased to 5%, compared to 4.6% recorded during the same period of last year. The increase emanated mainly from the price levels of transport (from -1.9% to 6.6%); ‘housing, water, electricity, gas and other fuels’ (from 2.6% to 7.9%); ‘hotels, cafes and restaurants’ (from 6.5% to 10.8%). On a monthly basis, the inflation rate registered an increase of 0.6 percent compared to a decrease of 0.3% recorded during the prior month.
In Zone 3 ((||Kharas, Erongo, Hardap and Omaheke), the year-on-year inflation rate stood at 3.8% in July compared to 4.2% increase recorded during same period of the preceding year. The slow increase in the annual inflation mainly witnessed in the price levels of ‘furnishing, household equipment and routine maintenance of the house’ (from 8% to 3.9%), food and non-alcoholic beverages’ (from 9.4% to 5.6%); and ‘miscellaneous goods and services’ (from 8.5% to 5.2%). On a monthly basis, the inflation rate witnessed a decline of 0.2 percent compared to 0.1 percent increase recorded a month earlier.
The headline annual inflation rate for July stood at 4.6% compared to 4.5% registered in July last year.
Namibian inflation is largely determined by three categories of the overall Namibia Consumer Price Index (NCPI) basket, namely housing, water, electricity, gas, and other fuels, food and non-alcoholic beverages and transport, which cumulatively make up just under 60% of the total inflation basket.
Additionally, following the rebasing of the NCPI basket in 2013, ‘alcoholic beverages and tobacco’ make up additional.12.6% of the basket, meaning that the four largest categories represent well over 70% of the total basket. The agency has stated that a large increase in inflation in these categories has a greater impact on the overall inflation than increases in the lower weighted categories.
