Hungry price monster bears fangs
Overall inflation in November was 5.6%, up from 5.1% the previous month and the highest since the end of last year.
Jo-Maré Duddy – The price monster got its appetite back last month, driving up annual food inflation to its highest level since April 2017.
Data released by the Namibia Statistics Agency (NSA) yesterday shows overall food inflation at a rate of 4.9% in November, up from 3% the previous month and higher than the 2.6% of a year ago.
Inflation for most items in the food basket increased, adding pressure on the already overburdened consumer. Food is the second heaviest item in the Namibian consumer basket with the consumer spending N$16.45 out of every N$100 on this item.
Following price increases in October, year-on-year (y-o-y) inflation for bread and cereals increased from 3.8% to 6%, the highest since February 2017. Last November, bread and cereals were in deflation with a rate of -4.8%.
October also saw an increase in the sugar price, which bumped up y-o-y inflation for sugar, jams, honey and sweets from 2.8% to 4.3% last month – the highest since the end of 2017.
Also in the basket
Two items in the food basket jumped from months of deflation back into inflation. In October, the annual rate for fish was -6.5%. This increased to 0.8% last month. The y-o-y rate for milk, cheese and eggs rose from -0.2% to 2.2%. A year ago, the rate for fish was 7.8%, while that of milk, cheese and eggs stood at 1.9%.
The y-o-y rate for meat was 4.7%, up from 3.4% in October but lower than the 10.9% of November 2017. Annual vegetable inflation rose from 7.6% to 8.9%. A year ago, the rate was 2.8%.
The price monster seemingly didn’t have a taste for fruit, oils and fats or mineral waters, soft drinks and juices last month. The y-o-y rate for fruit dropped from 9.6% in October to 7.9% - still higher than the 6.1% a year ago. Oils and fats came in at 3.8% compared to 4.5% in October and -0.5% in November 2017.
The rate for mineral waters, soft drinks and juices edged back from 3.3% to 3%, significantly down from 6.2% in November 2017.
Y-o-y inflation for alcohol and tobacco, which rose from 4.9% to 5.7%, is the highest since last October.
Fuel
Y-o-y transport inflation, which has been picking up speed since May this year, continued to accelerate.
November’s rate of 13.8% is slightly higher the 13.6% of October, mostly on account of the category, “vehicle purchasing price”, which rose from 6% to 6.9%. The rate for “operation of personal transport equipment”, which includes the fuel prices, slowed from 15.5% in October to 15.4% last month. A year ago, overall transport inflation braked at 6.1%.
Y-o-y inflation for other categories in November were: Clothing and footwear 0.4% (October 0.3% and November 2017 -4.6%); housing, water, electricity and gas 3.7% (3.8% and 8.6%); furniture, household equipment and maintenance 2.5% (0.9% and 0.7%); health 4.8% (4.8% and 5.7%); recreation and culture 5.1% (4.8% and 2.3%); and hotels, cafes and restaurants 2.9% (3.5% and 6.7%).
Data released by the Namibia Statistics Agency (NSA) yesterday shows overall food inflation at a rate of 4.9% in November, up from 3% the previous month and higher than the 2.6% of a year ago.
Inflation for most items in the food basket increased, adding pressure on the already overburdened consumer. Food is the second heaviest item in the Namibian consumer basket with the consumer spending N$16.45 out of every N$100 on this item.
Following price increases in October, year-on-year (y-o-y) inflation for bread and cereals increased from 3.8% to 6%, the highest since February 2017. Last November, bread and cereals were in deflation with a rate of -4.8%.
October also saw an increase in the sugar price, which bumped up y-o-y inflation for sugar, jams, honey and sweets from 2.8% to 4.3% last month – the highest since the end of 2017.
Also in the basket
Two items in the food basket jumped from months of deflation back into inflation. In October, the annual rate for fish was -6.5%. This increased to 0.8% last month. The y-o-y rate for milk, cheese and eggs rose from -0.2% to 2.2%. A year ago, the rate for fish was 7.8%, while that of milk, cheese and eggs stood at 1.9%.
The y-o-y rate for meat was 4.7%, up from 3.4% in October but lower than the 10.9% of November 2017. Annual vegetable inflation rose from 7.6% to 8.9%. A year ago, the rate was 2.8%.
The price monster seemingly didn’t have a taste for fruit, oils and fats or mineral waters, soft drinks and juices last month. The y-o-y rate for fruit dropped from 9.6% in October to 7.9% - still higher than the 6.1% a year ago. Oils and fats came in at 3.8% compared to 4.5% in October and -0.5% in November 2017.
The rate for mineral waters, soft drinks and juices edged back from 3.3% to 3%, significantly down from 6.2% in November 2017.
Y-o-y inflation for alcohol and tobacco, which rose from 4.9% to 5.7%, is the highest since last October.
Fuel
Y-o-y transport inflation, which has been picking up speed since May this year, continued to accelerate.
November’s rate of 13.8% is slightly higher the 13.6% of October, mostly on account of the category, “vehicle purchasing price”, which rose from 6% to 6.9%. The rate for “operation of personal transport equipment”, which includes the fuel prices, slowed from 15.5% in October to 15.4% last month. A year ago, overall transport inflation braked at 6.1%.
Y-o-y inflation for other categories in November were: Clothing and footwear 0.4% (October 0.3% and November 2017 -4.6%); housing, water, electricity and gas 3.7% (3.8% and 8.6%); furniture, household equipment and maintenance 2.5% (0.9% and 0.7%); health 4.8% (4.8% and 5.7%); recreation and culture 5.1% (4.8% and 2.3%); and hotels, cafes and restaurants 2.9% (3.5% and 6.7%).
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