Annual inflation decreased in August 2019

Month-on-month inflation decreased to 3,7 per cent in August 2019 from 4,4 per cent in August 2018, the Namibia Consumer Price Index (NCPI) shows.

According to the NCPI released by the Namibia Statistics Agency on Thursday, transport; housing, water, electricity and gas; alcoholic beverages; alcoholic beverages and hotels, cafes and restaurants affected the slow-down in inflation.

The decline in transport from 9,7 per cent in August 2018 to 6,1 per cent last month was as a result of decreases in the price levels of vehicle purchases and operation of personal transport equipment.

All sub-components in the housing, water, electricity and gas group in the NCPI decreased except for regular maintenance and repair of dwellings which increased from 3,4 per cent in August 2018 to 3,6 per cent in August 2019.

Annual inflation for alcoholic beverages and tobacco stood at 3,9 per cent, down from 5,4 per cent registered in August 2018; while hotels, cafes and restaurants decreased from 4,5 per cent to 3,4 per cent over the period under review.

The monthly inflation rate for August 2019 also declined from 0,2 per cent in July 2019 to 0,1 per cent in August 2019.

The calculation of inflation is based on a basket of goods and services, which contains a representative sample of the goods and services commonly consumed in a country. These are weighted in accordance with the relative percentage of expenditure selected for each of the said goods at household level. The price of these goods and services are then tracked over time to illustrate the change in the cost of living over time.

Namibia's inflation is largely determined by three categories of the overall NCPI basket - housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; as well as transport, which cumulatively make up just under 60 per cent of the total inflation basket.

Source: Namibia Press Agency