CHAMWE KAIRA
FNB Namibia economist Helena Mboti said FNB now expects inflation to ease to 3% year-on-year in May. The annual average inflation for 2025 is forecast at 3.9%, slightly below the earlier projection of 4.2%.
“Our updated forecast reflects lower-than-expected pressure from housing and utilities, while other assumptions remain broadly unchanged. Although housing and rent prices are expected to remain elevated, the utilities outlook has improved. We had anticipated an electricity tariff increase of over 8%, assuming limited fiscal capacity to subsidise national tariffs for a second consecutive year,” Mboti said.
NamPower’s announcement of a more moderate 3.8% increase, supported by a second government subsidy, suggests reduced inflationary pressure from utilities and weaker second-round effects across other categories, she added.
“This is a welcome relief to consumers, especially against a backdrop of constrained household finances, as indicated by weak Private Sector Credit Extension to households (2.6% year on year), robust growth in microlending (12.8%), and elevated Non-Personal Loans to households remaining above 6%,” Mboti said.
Headline inflation eased to 3.6% year-on-year in April 2025, down from 4.2% the previous month and 4.8% in April 2024. This drop was driven by a sharp decline in transport inflation.
The Namibian Statistics Agency reported zonal year-on-year inflation rates for April 2025. Zone 3, covering //Kharas, Erongo, Hardap, and Omaheke regions, recorded the highest rate at 4.1%. Zone 1, which includes the Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi regions, recorded 3.7%. Zone 2, the Khomas region, recorded the lowest rate at 3.2%.
Retail price analysis for selected products in April showed consumers in Zone 2 paid the highest price for pure sunflower oil (750 ml) at N$33.43. Zone 1 consumers paid N$32.58, and Zone 3 consumers paid the lowest price of N$31.95.
For Rooibos teabags (100g), consumers in Zone 1 paid the highest price at N$37.76, followed by Zone 3 at N$35.17, with Zone 2 consumers paying the lowest at N$33.74.
The core inflation rate, which excludes volatile elements such as food and energy prices, was 4%, slightly higher than the headline inflation rate of 3.6%.
