The annual inflation rate increased by 4.0 per cent in July this year compared to 2.1 per cent recorded in July 2020, the Namibia Consumer Price index report has indicated.

The recently issued report by the Namibia Statistics Agency said the main drivers included transport that increased by 1.4 per cent and food and non-alcoholic beverages that increased by 1.1 per cent.

“The annual inflation rate for housing, water, electricity, gas and other fuels component which accounts for 28.4 per cent of the consumer basket, increased by 1.2 per cent during July 2021 compared to a deflation of 1.5 per cent registered in July of the preceding year. The increase in the price levels of this category was reflected in the subgroups of regular maintenance and repair of dwelling from 0.0 per cent to 9.2 per cent and rental payment for dwelling from -2.3 per cent to 1.3 per cent,” it said.

Food accounts for 14.8 per cent of the consumer basket of the consumer price index and within the food sub-category, bread and cereals account for highest weight of food items that consumers purchase, having a weight of 4.8 per cent, followed by meat with 3.5 per cent.

Furthermore, the annual inflation rate for the alcoholic beverages and tobacco category which accounts for 12.6 per cent of the consumer basket rose by 2.5 per cent compared to 4.5 per cent registered in July 2020, a slowdown of 2.0 percentage points. The slowdown in the movement of the inflation rate in this group is as a result of a slow price increase in the alcoholic beverages sub-component.

Meanwhile, the zonal inflation rates for July 2021 revealed that Zone 1 that includes the Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi regions recorded an annual inflation rate of 3.8 per cent.

Zone 2 which includes Khomas recorded an annual inflation rate of 3.6 per cent, while Zone 3, which includes Erongo, Hardap Omaheke and //Kharas, registered an inflation rate of 5.0 per cent.

Source: Namibia Press Agency