Chamwe Kaira
Fuel prices are expected to put upward pressure on inflation after the Ministry of Industries, Mines and Energy increased pump prices by 21% per litre in December.
The rise follows higher global crude oil prices and refinery constraints.
Almandro Jansen of Simonis Storm said housing inflation is also expected to remain firm due to long-standing supply shortages and municipal tariff adjustments.
Economists project inflation to average between 3.7% and 3.9% in 2025, rising toward 4% in 2026 as fuel and utility prices settle at higher levels. They warn that currency volatility, logistics costs and global supply conditions could push inflation higher.
Namibia’s headline inflation eased to 3.4% in November, down from 3.6% in October, reflecting stable prices ahead of the festive season.
The rate is still above the 3% recorded a year earlier. Year-to-date inflation now stands at 3.9%, up from 3.3% over the same period in 2024, driven by higher costs in housing, utilities and food. On a monthly basis, prices were unchanged after a 0.5% rise in October linked to once-off utility adjustments.
Food and non-alcoholic beverages rose 3.9% year-on-year, slowing from 4.6% in October.
Most food groups recorded softer increases due to better supply and stable import costs. Dairy products fell 1.6%, while fruit prices remained high at 11.8%. Meat and fish prices climbed 8.3% and 7.5% respectively.
Housing, water, electricity, gas and other fuels inflation held at 4.1%, the biggest contribution to the headline rate.
Rentals increased 4.8% and maintenance costs rose 2.1%. Water, sewerage and refuse services slowed to 1.3% after steep increases earlier in the year.
Structural issues such as limited housing supply, slow land servicing and high construction costs continue to support higher housing inflation.
Transport inflation rose to 2%, extending its recovery from last year’s deflation. Higher fuel prices, increased vehicle maintenance costs and modest growth in vehicle purchase prices drove the rise. Public transport costs increased by 1.1%.
Prices in recreation, culture, education and hospitality remained firm.
Education increased 4.3%, while hotels, cafés and restaurants rose 4.8% due to higher menu prices, service charges and increased tourism demand in coastal towns.
Core inflation, which excludes food and fuel, eased to 3.6% but remained above the headline rate.
Goods inflation fell to 3.0%, while services inflation stayed at 4%. Regional inflation levels were similar, with Zone 1 at 3.3% and Zones 2 and 3 at 3.4%.
Differences in food prices remained wide, especially for staples like maize meal and fresh produce such as tomatoes and apples.
Caption
The price of fuel is expected to put upward pressure on inflation.
Photo: Contributed
