Inflation in northern regions relatively high

Since January 2023, the northern regions have been recording relatively high inflation rates compared to other regions. However, the average actual prices of selected goods in other regions are relatively high compared to the prices in the northern regions, data provided by the Namibia Statistics Agency (NSA) indicated.

Zone 1, which includes Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi, recorded an average annual inflation rate of 7.25% in the first four months of 2023. Inflation is the increase in the prices of goods and services.

Last month, the northern regions recorded an annual inflation rate of 6.3% compared to 5.1% in April last year. The increase in the annual inflation rate was mainly driven by increases in the price levels of food and non-alcoholic beverages which increased from 6.0% to 13.4%.

In addition, Zone 3 (//Kharas, Erongo, Hardap and Omaheke) recorded an average annual inflation rate of 6.9% year to date. Zone 3 recorded an inflation rate of 6% in April 2023, compared to 5.3% in April last year.

Moreover, Zone 2 (Khomas) registered an annual average inflation rate of 6.4% between January and April 2023. The Khomas region recorded an inflation rate of 5.9% last month compared to 6.3% in April 2022.

Actual prices

Looking at the actual prices, “analysis of the average retail prices of selected products for the month April 2023 revealed that consumers in Zone 2 paid the highest price for pure sunflower oil (750 ml) at N$36.89 followed by Zone 3 at N$36.40, while consumers in Zone 1 paid the lowest price of N$36.07.

For white bread (standard loaf), consumers in Zone 2 paid the lowest price at N$13.16 while the highest price was paid by consumers residing in Zone 3 at N$13.70.

Consumers in Zone 3 paid the lowest price for brown sugar (1kg) at N$18.90, with the highest price paid by consumers in Zone 2 at N$19.99,” NSA pointed out.

Overall, annual inflation in Namibia last month decreased to 6.1% from 7.2% in March, the lowest since July 2022 (6.8%).

The major contributors to the annual inflation rate for April 2023 were food and non-alcoholic beverages (2.5 percentage points); alcoholic beverages and tobacco (0.9 percentage point); housing, water, electricity, gas, and other fuels (0.7 percentage points); and transport (0.6 percentage points) while all other division contribution stood at 1.5 percentage [email protected]