Average inflation above 6% in 2017

Jo-Maré Duddy – Despite massive food inflation relief last year, high rates for transport, as well as for housing, water and electricity kept Namibia’s overall average for 2017 in line with that of 2016.

The Namibia Statistics Agency (NSA) yesterday said December’s overall annual inflation rate was 5.2% - the same as in November and October. The latest set of data resulted in an overall average inflation rate of 6.2% for 2017, slightly lower than the 6.7% of the previous year.

The average rate for housing, water and electricity is 9.2% compared to 7.7% in 2016. Housing, water and electricity is the heavyweight in the consumer basket, gobbling up N$28.36 out of every N$100 in the public’s purse.

With a weight of 16.45, food and non-alcoholic beverages is the second most important item in the national basket. Here the price monster was merciful: Namibia’s average food inflation rate in 2017 was 5.3%, a drastic breather compared to the 11.1% of 2016.

Average transport inflation for 2017 came in at 5.1% compared to 3.2% the previous year. Transport is the third heaviest item in the consumer basket with consumers spending N$14.28 out of every N$100 on this item.