Annual inflation rate decreased by 1.3 per cent in August

The annual inflation rate last month decreased by 1.3 per cent from the 3.7 per cent recorded in August 2019, the Namibia Consumer Price Index (NCPI) report shows.

The report, availed to Nampa on Wednesday by the Namibia Statistics Agency, indicates that the slowdown in the annual inflation rate between August 2019 and August 2020 resulted mainly from decreases in prices reflected in the categories of housing, water, electricity, gas and other fuels.

“This accounts for 28.4 per cent of the overall basket of NCPI that declined by -1.5 per cent compared to an increase of 1.9 per cent recorded in August 2019. Prices of transport, which accounts for 14.28 per cent of the overall NCPI basket, also reflected a slowdown by increasing by 1.2 per cent in August 2020 compared to 6.1 per cent in August 2019. Other categories which contributed to the slow growth of the annual inflation rate were education, which increased by 7.0 per cent compared to 12.0 per cent recorded in August 2019, as well as clothing and footwear, which declined by -5.1 per cent compared to an increase of 1.6 per cent in August 2019,” the report reads.

The education category recorded the highest annual inflation rate of 7.0 per cent in August 2020, followed by food and non-alcoholic beverages at 6.8 per cent, recreation and culture at 6.3 per cent and miscellaneous goods and services at 5.8 per cent. The clothing and footwear and housing, water, electricity, gas and other fuels categories recorded the lowest annual inflation rates of -5.1 per cent and -1.5 per cent, respectively, it added.

The index for goods and services for August 2020 stood at 143.0 and 138.7 compared to the corresponding indices of 138.7 and 136.6 recorded during the same period last year.

The monthly and annual inflation rates for Goods were 0.8 percent and 3.1 percent respectively, while for Services the inflation rates were -0.1 percent and 1.5 percent.

The annual inflation rate for the health group stood at 2.8 percent in August 2020, a decline of 0.4 per cent points when compared to 3.1 per cent recorded in August 2019. The downward movement was reflected in price decreases of outpatient services, medical, dental and paramedical services from 3.0 per cent to 1.9 per cent.

The inflation basket is generally reconstituted every five years.

“In Namibia, the basket was last rebased in 2013, using household expenditure data collected in the 2009/10 Household Income and Expenditure Survey. The basket now contains over 350 items, grouped into 12 categories and 55 sub-categories, for which prices are collected on a monthly basis from more than 900 retail outlets,” reads the report.

Source: Namibia Press Agency