Photo Bruno-kelzer/Unsplash
Photo Bruno-kelzer/Unsplash

Stubborn price monster recorded at 5.4%

Year-to-date average at 6%
The Bank of Namibia (BoN) projects inflation to average 5.6% in 2023.
Phillepus Uusiku
Inflation increased to 5.4% in September, compared to 4.7% recorded in August, according to the Namibia Statistics Agency (NSA). Year to date (January to September), inflation averaged 6%. The Bank of Namibia (BoN) projects inflation to average 5.6% in 2023.

The top three main drivers of inflation in September were food and non-alcoholic beverages, alcoholic beverages and tobacco, and housing, water, electricity, gas, and other fuels categories.

Inflation in the food and non-alcoholic beverages category was mainly driven by fish, which recorded an inflation rate of 16.9%, followed by vegetables (16.4%) and fruits (15.3%).

The alcoholic beverages and tobacco category recorded an inflation rate of 7.9% in September. In addition, the housing, water, electricity, gas, and other fuels category, which carries the largest weight of 28.36% in the NSA consumer basket, recorded an inflation rate of 3.0%.

Meanwhile, the transport category, which recorded deflation rates during June, July and August, recorded an inflation rate of 2.2% in September. The ministry of mines and energy in October announced an increase in fuel prices. Petrol prices for ULP95 increased by N$1.90, while diesel prices for 50ppm and 10ppm jumped by N$2.40.

In Walvis Bay, the price of petrol is now N$22.88 per litre, while diesel 50ppm costs N$23.15. Diesel 10ppm costs N$23.35 per litre. Similarly, fuel prices in South Africa, which is Namibia’s key import market, increased significantly this month, Fin24 reported.

Zones

Looking at the zones, Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) recorded the highest inflation rate of 6.1% in September. Year to date, inflation in the northern regions averaged 6.3%.

Moreover, Zone 2 (Khomas) recorded the second-highest inflation rate of 5.2% in September. Inflation in Khomas region averaged 5.7% between January and September.

Lastly, Zone 3 (//Kharas, Erongo, Hardap and Omaheke) recorded an inflation rate of 4.6% in September and registered an average of 5.8% in the first nine months of 2023.

Analysis of the average retail prices of selected products for the month of September 2023 revealed that consumers in Zone 1 paid the highest price for diesel per litre at N$21.26 while both Zone 2 and Zone 3 paid N$21.18 per litre.

Consumers in Zone 2 paid the highest price for white bread at N$14.55 followed by Zone 1 at N$14.24, while Zone 3 paid the lowest price of N$13.16, NSA [email protected]

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Namibian Sun 2025-01-09

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