Annual inflation decreased in December 2019

The annual inflation rate reduced in the month of December 2019 to 2.6 percentage from 5,1 percentage recorded in December 2018, the Namibia Consumer Price Index (NCPI) has indicated.

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

The decline in transport from 10,9 per cent in December 2018 to 2,0 per cent last month as a result of a decrease 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 from 3.1 per cent in December 2018 to 1,9 percent December 2019.

The NCPI bulletin says the main drivers of annual inflation rate during the month of December 2019, were mainly education which stood at 12,0 per cent, recreation and culture standing at 5,2 per cent while hotels, cafes and restaurant contributed about 4.1 percent.

Annual inflation for alcoholic beverages and tobacco stood at 3,2 per cent, down from 5,9 per cent registered in December 2018.

The monthly inflation rate for December 2019 also declined from 0,1 percent to -0.1 percent registered in the preceding month.

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 the 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