Inflation Accelerates to 5,2 Percent in February

ANNUAL inflation accelerated to 5,2% in February from 4,9 in January, the Namibia Statistics Agency has revealed in its latest statistics.

The Namibia Consumer Price Index determines the inflation rate, which in turn is a measure of the change in the prices of goods and services.

“The annual inflation rate stood at 5,2% for February 2014 as compared to 5,8% recorded during the same period last year. During the period February 2013 to February 2014, the annual inflation rate fluctuated between 4,4% and 6,2%,” the Agency said.

The monthly inflation rate for February stood at 0,7%. This is an increase of 0,3% when compared to the same period a year earlier. On a monthly basis, the months of January 2014, February 2014 and July 203 registered the highest inflation rates of 0,9% and 0,7% for the period of February 2013 to February 2014. Similarly, the months of May 2013 and December 2013 continued to witness the lowest monthly inflation rates of 0,1%.

The highest annual inflation rates of 6,2% were recorded in January and June 2013, whilst the lowest annual inflation rate was recorded in November 2013. It stood at 4,4%.

“The highest contributors to the February 2014 inflation were Food and Non Alcoholic beverages, Transport as well as housing, water and electricity. These items contributed 22,6%, 20,7% and 17,7% respectively. Alcoholic beverages followed closely with a 16,5% contribution to overall inflation,” the Agency said.

Last week, FNB Namibia economist, Daniel Motinga said even though the bank continue to think that Consumer Price Index will benefit structurally from the reduced weight of food and transport, these components will remain important drivers of inflation, especially in an environment of currency volatility combined with the presence of political uncertainty in key oil producing regions.

“We think it could propel to above eight percent this year partly because of the drought impact but also because of increased demand. We expect inflation to average 6,1% for 2014, up from 5,6% in 2013. However, we see it breaching the six percent psychological threshold in June,” Motinga said.

Source : The Namibian