2013 inflation to average 6.4%

The Bank of Namibia estimates that inflation will average 6.4% in 2013, a marginal decrease from the 6.5% recorded last year.
Despite the recent fuel price increase, and a January annual inflation rate of 6.6%, central bank deputy governor, Ebson Uanguta told reporters on Wednesday that there was no cause for concern on the inflation front.
He said:“With the level at which inflation is going to prevail, we are not worried about that [Inflation spiralling out of control]. We will start getting worried when it [inflation] hovers around double digit figures.” Uanguta said the increase in the inflation rate in January was on the back of annual increases in administered prices, particularly tertiary education and housing. He, however, expects 2013 inflation to be externally generated particularly from international food and oil prices.
Meanwhile, the local economy is projected to grow by 4.4% this year, down from the estimated 4.6% in 2012. Moderate growth in the mining sector, particularly in the diamond sub-sector is expected to drive the deceleration in the level of growth this year.