July month-on-month inflation rate decrease to 4.5%

Martin Endjala

THE monthly report recently released by Namibia Statistic Agency (NSA) Statistician-General and Chief Executive Officer, Alex Shimuafeni highlighted that the inflation rate performance for the month of July decreased to 4.5 percent compared to 6.8 recorded in the same month last year.

Meanwhile, the statistics also revealed that the 12-month average annual inflation rate from August 2022 to July 2023 was estimated at 6.6 percent.

The annual inflation rate for housing, water, electricity, gas, and other fuels components, which accounts for 28.4 percent of the consumer basket, registered an increase of 2.7 percent during July 2023 compared to 1.8 percent witnessed in July 2022.

“Month-on-month, this component increased from 0.1 percent to 0.3 percent.”

The inflation rate statistics released by NSA measures the change in the Consumer Price Index (CPI) for the month under review compared to the previous month (month-on month changes) as well as to the corresponding month in the previous year (year-on-year changes).

According to Shimuafeni, the inflation rate is vital for purposes of economic policymaking, especially the conduct of monetary policy and to consumers in general.

He said the main contributors to the annual inflation rate in July 2023 were food and non-alcoholic beverages with a contribution of 2.0 percentage points, with alcoholic beverages and tobacco contributing 0.9 percentage points while housing, water, electricity gas and other fuels contribution stood at 0.7 percentage points.

“In terms of month-on-month, the inflation rate stood at 0.3 percent compared to 0.1 percent registered during the preceding month. At the zonal level for the month of July 2023, zone 1 which is Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi regions recorded the highest annual inflation rates of 4.7 percent,” he said.

According to Shimuafeni, Zone 2 which is Khomas region recorded an annual inflation rate of 4.6 percent while Zone 3 which includes //Kharas, Erongo, Hardap, Omaheke regions recorded an annual inflation rate of 4.2 percent.

Analysis of the average retail prices of selected products for the month of July 2023 indicates that consumers in Zone 2 paid the highest price for eggs, a pack of 6 eggs cost N$ 22.13 followed by Zone 3 at N$ 21.29.

“However, Zone 1 paid the lowest price of N$ 19.83 for pure sunflower (750ml), consumers in Zone 1 paid the lowest price at N$ 32.18 while the highest price was paid by consumers residing in Zone 2 at N$ 34.90,” he said.

Meanwhile, the annual inflation rate for goods was estimated at 5.5 percent, while the annual inflation rate for services stood at 3.1 percent.

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