The Namibia statistics Agency (NSA) has announced that the October 2020 annual inflation rate slowed to 2.3 percent from 3.0 percent recorded in October 2019.
“The slow growth in the annual inflation rate for October 2020 was mainly as a result of declines in the price levels of Clothing and footwear (from 0.9 percent to -6.1 percent); Housing, water, electricity, gas and other fuels (from 1.9 percent to -1.3 percent) and Transport (from 1.5 percent to -1.2 percent), ” NSA Statistician-General & CEO, Alex Shimuafeni said.
“Further, prices of the Health category reflected a slowdown in October 2020 increasing by 2.5 percent compared to 3.1 percent registered in October 2019. The Hotels, cafes and restaurants also registered a slowdown in prices increasing by 0.8 percent in October 2020 compared to 2.8 percent recorded in October 2019.”
On a monthly basis, the NSA said the inflation rate stood at 0.1 percent compared to 0.3 percent recorded a month earlier.
The inflation rate measures the change in the CPI for the month under review to the previous month (month-on-month change) as well as to the corresponding month in the previous year (year-on-year change). The inflation rate is vital for purposes of economic policy-making, especially the conduct of monetary policy and to consumers in general.
The Zonal inflation rates according to the NSA for the month of October 2020 revealed that, Zone 1 (Kavango East, Kavango West,Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) recorded annual inflation rate of 2.6 percent, Zone 2 (Khomas) obtained 2.4 percent and Zone 3 (//Kharas, Erongo, Hardap and Omaheke) registered 1.8 percent.
On a monthly basis, Zone 1 and Zone 3 both recorded inflation rate of 0.1 percent, while Zone 2 monthly inflation rate declined by 0.1 percent the NSA said.
“The analysis of the average retail prices for some of the basic products consumed by the households for the month of October 2020 indicate that for a maize meal (2.5 kg), Zone 2 recorded the lowest price of N$36.66 followed by Zone 3 at N$37.19. For cooking oil (750 ml), consumers in Zone 2 paid the lowest price at N$19.10 while the highest price was observed in Zone 1 at N$24.18. On average, the motorist in Zone 1 paid N$12.15 per liter for petrol, while in Zone 2 paid N$12. 07 per liter,” Shimuafeni said.