2H kicks off with an inflation rate of 4.5%

The first month of the second half (2H) of 2023, July, recorded an annual inflation rate of 4.5%, according to the Namibia Statistics Agency (NSA). The last time Namibia recorded an inflation rate of 4.5% was in March 2022.

Inflation in June 2023 and July 2022 stood at 5.3% and 6.8%, respectively. Year to date, inflation in Namibia averaged 6.2%. The Bank of Namibia (BoN) projects inflation to average 6.1% in 2023.

The food and non-alcoholic beverages category, which carries the second largest weight of 16.45%, was the main driver of annual inflation in July.

Other major contributors to annual inflation were alcoholic beverages and tobacco, housing water, electricity, gas, and other fuels.

Looking at zonal inflation, Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) recorded the highest inflation rate of 4.7% in July.

In addition, Zone 2 (Khomas) recorded the second highest inflation rate of 4.6% during the month under review.

Moreover, Zone 3 (//Kharas, Erongo, Hardap and Omaheke) recorded the lowest inflation rate of 4.2% in July.

Analysis of the average retail prices of selected products for the month of July 2023 revealed that consumers in Zone 2 paid the highest price for eggs pack of 6 at N$22.13 followed by Zone 3 at N$21.29, while consumers in Zone 1 paid the lowest price of N$19.83, NSA pointed out.

For pure sunflower (750ml), consumers in Zone 1 paid the lowest price at N$32.18 while the highest price was paid by consumers residing in Zone 2 at N$34.90, NSA [email protected]