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DEBUT: The NSA has produced its first core inflation rate to measure overall price changes in the economy without accounting for volatility. PHOTO: REUTERS
DEBUT: The NSA has produced its first core inflation rate to measure overall price changes in the economy without accounting for volatility. PHOTO: REUTERS

Statistics agency releases first core inflation rate

Ogone Tlhage
Statistics agency releases first core inflation rate

The Namibia Statistics Agency (NSA) has released its first core inflation rate, saying it will capture the rate without accounting for volatility in the inflation figures.

It marks the first time that the NSA has started to compile the core inflation rate since its establishment in 2012, statistician general Alex Shimuafeni said.

“I am delighted to announce once again that the NSA has started to compile a core inflation rate, as from April 2024. Core inflation refers to a measure of inflation that excludes certain volatile elements from the overall inflation calculation,” Shimuafeni said.

The core inflation rate will not lend itself to extreme events that may affect the prices of general goods and services, Shimuafeni noted.

“These volatile elements typically include food and energy prices, which tend to experience significant price swings due to factors such as weather conditions, geopolitical events or changes in supply and demand. During the month of May 2024, the core inflation rate stood at 4.1% while the headline inflation rate was at 4.9%,” he said.

The headline annual inflation rate for May 2024 stood at 4.9%, compared to 6.3% recorded in May 2023.

On a monthly basis, the inflation rate witnessed an increase of 0.3% compared to 0.7% recorded a month earlier.

Regional prices

The zonal inflation rates for the month of May 2024 revealed that zone two (Khomas Region) recorded the highest annual inflation rate of 5.2%, followed by zone one, which includes the Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi regions, which recorded an inflation rate of 5.1%, and zone three, which includes the //Karas, Erongo, Hardap and Omaheke regions, whose annual inflation rate was observed at 4%.

An analysis of the average retail prices of selected products for the month of May 2024 revealed that consumers in zone three paid the highest price for a Rooibos tea bag (200 g) at N$34.99, followed by zone one at N$31.98, while consumers in zone two paid the lowest price of N$31.88.

Meanwhile, consumers in zone one paid the highest price for a bag of 5 kg maize meal at N$69.66, followed by consumers in zone three at N$68.77, while consumers in zone two paid the lowest price, at N$66.34.

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Republikein 2024-11-23

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