Annual inflation rate decreases by 0.7 per cent

The annual inflation rate decreased by 0.7 per cent from 3 per cent recorded in October 2019 compared to 2.3 per cent recorded in October 2020, the Namibia Statistics Agency’s Namibia Consumer Price Index (NCPI) report shows.

The report, availed to Nampa on Thursday, indicates that the slowdown in the annual inflation rate between October 2019 and October 2020 resulted mainly from decreases reflected in the price levels of clothing and footwear.

“Clothing and footwear accounts for 3.1 per cent of the basket that declined by 6.1 per cent compared to 0.9 per cent recorded in October 2019. Housing, water, electricity, gas and other fuels, which accounts for 28.4 per cent of the overall basket declined by 1.3 per cent compared to an increase of 1.9 per cent recorded in October 2019,” the report shows.

Furthermore, the transport category, which accounts for 14.3 per cent of the overall basket of NCPI also reflected a decline of 1.2 per cent in October 2020, compared to an increase of 1.5 per cent registered in October 2019.

Education, which accounts for 3.6 per cent of the basket, increased by 7.0 per cent in October 2020 compared to 12.0 per cent recorded in October of the preceding year. Hotels, cafes and restaurants, which account for 1.4 per cent of the basket, increased by 0.8 per cent in October 2020 compared to 2.8 registered in October 2019, the report adds.

Food and non-alcoholic beverages recorded the highest annual inflation rate of 7.1 per cent in October 2020, followed by education at 7.0 per cent, recreation and culture at 5.5 per cent; miscellaneous goods and services at 5.4 per cent and alcoholic beverages and tobacco at 4.3 per cent.

Inflation rates for the month of October 2020 revealed that, Zone 1 consisting of Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi recorded annual inflation rate of 2.6 per cent, while Zone 2 consisting of Khomas obtained 2.4 per cent and Zone 3 consisting of ||Kharas, Erongo, Hardap and Omaheke registered 1.8 per cent. On a monthly basis, Zone 1 and Zone 3 both recorded an inflation rate of 0.1 per cent, while Zone 2’s monthly inflation rate declined by 0.1 per cent.

Source: Namibia Press Agency