Industry

Annual inflation rate slowed by 0.2 per cent in December

Summary

Namibia’s annual inflation rate slowed to 2.4 per cent in December 2020 from 2.6 per cent recorded in December 2019. This is according to the Namibia Consumer Price Index (NCPI) report for December 2020 issued on Friday. The report said […]

Namibia’s annual inflation rate slowed to 2.4 per cent in December 2020 from 2.6 per cent recorded in December 2019.

This is according to the Namibia Consumer Price Index (NCPI) report for December 2020 issued on Friday.

The report said the decrease in the annual inflation rate resulted mainly from decreases reflected in the price levels of clothing and footwear (from 0.5 per cent to -6.0 per cent); housing, water, electricity, gas and other fuels (from 1.9 per cent to -1.3 per cent) and transport (from 2.0 per cent to -1.3 per cent).

Food and non-alcoholic beverages recorded the highest annual inflation rate of 7.6 per cent in December 2020, followed by education at 7.0 per cent, miscellaneous goods and services at 5.6 per cent, alcoholic beverages and tobacco at 4.3 per cent and recreation and culture at 3.9 per cent. Clothing and footwear recorded the lowest annual inflation rate of -6.0 per cent.

“Further the transport category which accounts for 14.28 per cent of the overall basket of NCPI also registered a decline of 1.3 per cent in December 2020 compared to an increase of 2.0 per cent registered in December 2019.”

Education which accounts for 3.65 per cent of the basket increased by 7.0 per cent in December 2020 compared to 12 per cent recorded in December of last year while hotels, cafes and restaurants increased by 0.1 per cent in December 2020 compared to an increase of 4.1 per cent registered in December 2019, it said.

Overall for the year 2020, the average inflation rate slowed down, registering an increase of 2.2 per cent compared to the 3.7 per cent increase witnessed in 2019. The slowdown in the annual inflation rate between 2019 and 2020 was mainly reflected in the main categories based on the basket weight such as housing, water, electricity, gas and other fuels and transport.

The report examines the monthly inflation rate performance in Namibia as measured by the Consumer Price Index. The NCPI is used as the basis to calculate the rate of inflation as experienced by consumers.

Source: Namibia Press Agency

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