NAMIBIA’S INFLATION SLOWS TO 4.0 PCT AT END-JUNE FROM 6.3 PCT A YEAR EARLIER

WINDHOEK-- The annual inflation rate in Namibia slowed down to 4.0 per cent in June from 6.3 per cent recorded a year earlier, according to the latest Namibia Consumer Price Index (NCPI) report released by the Namibia Statistics Agency (NSA).

The NSA said here Thursday that the slowdown could be attributed to declining price levels of clothing and footwear, housing, water, electricity, communication, hotels and restaurants and household equipment in the total inflation basket.

On a month-to-month basis, the inflation rate eased to 0.2 per cent in June from 0.4 per cent recorded in May.

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.

The NSA also reported Thursday that Namibians continued to spend more on transport, but are benefiting from lower food prices.

The NCPI data showed that the month-on-month inflation in transport went up to 1.6 per cent from 0.4 per cent in May, while the annual inflation rate rose to 7.2 per cent in June from 5.0 per cent in June 2017.

Inflation in food and non-alcoholic beverages eased by 0.8 percentage point over the past year. The decline emanated from lower prices for jam, sugar, honey, syrups, chocolate, coffee, tea, soft drinks and juices, milk and cheese.

However, the annual inflation rate for alcoholic beverages and tobacco rose to 5.1 per cent compared to 3.0 per cent registered in June last year.

Source: NAM NEWS NETWORK