April Inflation Slows to 2,9 Percent

THE inflation rate for April fell from 3,4% in March to 2,9% on an annual basis, the Namibia Statistics Agency said.

However, inflation increased from 0,4% to 0,5% on a monthly basis.

The fall on an annual basis continued mainly as a result of transport inflation which decreased to 4,2% compared to 9,4% recorded in the same period last year.

“The increase in monthly inflation was mainly brought by increases in the prices of goods and services in all the groups of the consumption basket with the exception of the group of clothing and footwear and furnishings, household equipment and routine both of which declined by 0,2% while housing, water, electricity, gas and other declined by 0,1%,” the agency said.

Annual inflationary pressures in Namibia have continued a trend that has been observed since July 2014.

During April, a decline in the annual inflation rate was recorded in the group of transport (- 4,2%). The slowdown movements were recorded in the groups of alcoholic beverages and tobacco (7,1%), food and non-alcoholic beverages (5,2%), furnishings, household equipment and routine (3,6%) and recreation and culture (3%). Corresponding rates recorded in the previous month were estimated as transport (-3,7%), alcoholic beverages and tobacco (8,6%), food and non- alcohol beverages (5,5%), furnishings, household equipment and routine (4,2%) and recreation and culture (4,6%).

The food and non-alcoholic beverages index for April 2015 stood at 116,6 as compared to 116,1 registered in the previous month resulting in an increase of 0,5 percentage points.

The transport annual inflation rate declined by 4,2% in April as compared to 9,4% recorded during the same period last year.

“This significant decline in transport inflation over the year has been largely driven by decreases in the subgroup of operation of personal transport equipment, which declined from 8,6% in April 2014, to -9,3% in April. The decline of 3,7% on an annual basis in the subcategory public transportation services were observed in the sale of air tickets,” the agency said.

The period from June 2014 to February 2015 generally recorded decreases in prices of petrol and diesel. The downward trend was reversed in April, when an increase was recorded. This increase was mainly caused by a slight increase in the price of global crude oil.

The Index for goods and services stood at 113,6 and 108,7 respectively as compared to the corresponding indices of 110,4 and 105,6 recorded during the same period last year.

During, April the monthly and annual inflation rates for goods were 0,8% and 2,9% while those for services stood at 0,1% and 3%.

Parallel rates recorded during the same period in the previous year stood at 1,1% and 7,5% and 0,7% and 3,8% respectively.

Source : The Namibian