Inflation rate in Namibia relatively low
Compared to other African countries
Zimbabwe recorded an annual inflation rate of 280% in September 2022.
Despite Namibia recording an inflation rate of 7.1% in October 2022, it is still relatively low compared to other African countries, analysis by Simonis Storm indicated.
Year to date, inflation in Namibia averaged 5.9%. The month of August recorded the highest of 7.3%, while February and March recorded the lowest inflation rate of 4.5%.
According to Simonis Storm, by the end of September 2022, 44 African countries out of a total of 54 recorded inflation rates above 5%, of which 22 African countries had double digit inflation rates ranging from 10% to 280%.
Some key highlights from the analysis indicate that Zimbabwe recorded the highest inflation of 280% in September 2022.
In addition, Tanzania recorded the lowest inflation rate of 4.8%. Benin and Sudan recorded deflation rates of 1.6% and 2.5%, respectively. Moreover, neighboring South Africa recorded an inflation rate of 7.5% in September 2022.
Simonis Storm noted that the pace of global food price increases have decreased from double to single digit movements.
It will take some time for global food prices to filter through to lower consumer prices locally and the pace of local food price declines are kept at bay due to a weaker Rand and a rise in diesel prices, a key production cost for farmers
From a total of 92 food products in the Food and non-alcoholic beverage category, the proportion of food products that have annual inflation rates in excess of 10% increased from 34.8% in September 2022 to 41.3% in October 2022.
“While there are certain risks to keeping inflation elevated, we do believe that inflation will likely edge lower for the remainder of 2022 and in 2023,” Simonis Storm said.
Meanwhile, IJG’s inflation model currently forecasts Namibia’s annual inflation rate to stay elevated above the upper target limit for the remainder of 2022, and for it to end the year at around 6.6%. –[email protected]
Year to date, inflation in Namibia averaged 5.9%. The month of August recorded the highest of 7.3%, while February and March recorded the lowest inflation rate of 4.5%.
According to Simonis Storm, by the end of September 2022, 44 African countries out of a total of 54 recorded inflation rates above 5%, of which 22 African countries had double digit inflation rates ranging from 10% to 280%.
Some key highlights from the analysis indicate that Zimbabwe recorded the highest inflation of 280% in September 2022.
In addition, Tanzania recorded the lowest inflation rate of 4.8%. Benin and Sudan recorded deflation rates of 1.6% and 2.5%, respectively. Moreover, neighboring South Africa recorded an inflation rate of 7.5% in September 2022.
Simonis Storm noted that the pace of global food price increases have decreased from double to single digit movements.
It will take some time for global food prices to filter through to lower consumer prices locally and the pace of local food price declines are kept at bay due to a weaker Rand and a rise in diesel prices, a key production cost for farmers
From a total of 92 food products in the Food and non-alcoholic beverage category, the proportion of food products that have annual inflation rates in excess of 10% increased from 34.8% in September 2022 to 41.3% in October 2022.
“While there are certain risks to keeping inflation elevated, we do believe that inflation will likely edge lower for the remainder of 2022 and in 2023,” Simonis Storm said.
Meanwhile, IJG’s inflation model currently forecasts Namibia’s annual inflation rate to stay elevated above the upper target limit for the remainder of 2022, and for it to end the year at around 6.6%. –[email protected]
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