Khomas records highest inflation for October

Tujoromajo Kasuto

The Namibia Statistics Agency (NSA) in its monthly Consumer Price Index (CPI) reveals that for the month of October Zone 2 (Khomas) recorded the highest annual inflation rate of 7.8 percent followed by Zone 3 (Hardap, Omaheke, //Karas, and Erongo) at 6.8 percent.

This is followed by Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) which recorded an annual inflation rate of 6.5 percent. NSA’s Statistician-General and Chief Executive Officer (CEO), Alex Shimuafeni, says the Zonal inflation rates on a monthly basis, Zone 1 and Zone 2 recorded an inflation rate of 0.2 percent each, while Zone 3 recorded the monthly inflation rate of 0.1 percent. “Analysis of the average retail prices of selected products for the month of October 2022 revealed that consumers in Zone 3 paid the highest price for pure sunflower oil (750ml) at N$41.85 followed by Zone 2 at N$41.37, while consumers in Zone 1 paid the lowest price of N$39.18. For brown sugar (1 kg), consumers in Zone 1 paid the lowest price at N$17.49, while the highest price was paid by consumers residing in Zone 2 at N$18.92,” he says.

This comes as the annual inflation rate in October increased by 7.1 percent compared to 3.6 percent recorded in October 2021 and on a monthly basis, the inflation rate increased by 0.2 percent compared to 0.1 percent recorded a month earlier. The NSA shares that transport and food and non-alcoholic beverages components continued to be the main contributors to the annual inflation rate with a contribution of 2.6 percentage points and 1.7 percentage points, respectively. Other contributors include alcoholic beverages and tobacco (0.9 percentage points); housing, water, electricity, gas, and other fuels (0.6 percentage points) and Furnishing household equipment and routine maintenance of the house (0.5 percentage points).

Meanwhile, food and non-alcoholic beverages which accounts for 16.5 percent of the NCPI basket recorded an annual inflation rate of 9.1 percent during the month of October 2022 compared to 5.2 percent registered during the same period last year. On a monthly basis, NSA states that price levels for this category increased by 0.7 percent during the period under review compared to 0.6 percent recorded a month earlier. “Food sub-category accounts for 14.8 percent of the consumer basket in the CPI. Within the food sub- category, bread, and cereals accounts for the highest weight of food items that consumers purchase,having a weight of 4.8 percent followed by Meat (3.5%); Sugar, jam, honey, syrups, chocolate and confectionery (1.4%); Vegetables; and milk, cheese and eggs (1.2%) each,” the consumer bulletin reads.

By Observer