Inflation rises 3.5% in September
Namibia's headline inflation increased to 3.5% year-on-year in September from 3.2% in August, driven primarily by higher transport prices and persistent pressure in housing and utilities.
Transport inflation rebounded to 1.3% year-on-year from negative 1% in August, contributing 0.2 percentage points to headline inflation. This marks the category's first positive contribution since March, signalling a cyclical turning point.
The Namibia Statistics Agency attributed the increase to broad price rises across motorcycles, bicycles, and motorcars, with the purchase of vehicles subcategory accelerating to 4.4% year-on-year from 2.8% in August.
According to the ministry of mines, international oil prices increased due to heightened geopolitical tensions, though a stronger Namibia dollar helped offset some cost pressures. Fuel prices remained unchanged for October, with petrol at N$20.37 per litre, diesel 50ppm at N$19.92, and diesel 10ppm at N$20.02.
Housing, water, electricity, gas and other fuels inflation edged up to 3.6% year-on-year in September from 3.4% in August, contributing 0.9 percentage points to headline inflation. The rise was driven by higher electricity and gas costs, which increased by 3% year-on-year, and water and sewerage costs at 4%, while rental inflation eased slightly to 3.7% from 4.2% a year earlier.
Food and non-alcoholic beverages inflation moderated to 4.9% year-on-year in September from 5.2% in August, reflecting lower price growth across most categories except fish, which rose 9.0% year-on-year, meat at 3%, oils and fats at 2.6%, and fruit at 4.8%.
Month-on-month, headline inflation was unchanged , consistent with August. Core inflation remained steady at 3.6%.
FNB Namibia economist Helena Mboti said inflation is expected to remain around 3.5% by year end, with mild upward pressure from transport and housing offset by slightly lower food prices. She said the bank maintains its inflation forecast at 3.5% year-on-year average for 2025, with transport and housing costs likely to keep mild upward pressure on prices whilst good rainfall prospects should continue to support lower food inflation over the medium term.
Transport inflation rebounded to 1.3% year-on-year from negative 1% in August, contributing 0.2 percentage points to headline inflation. This marks the category's first positive contribution since March, signalling a cyclical turning point.
The Namibia Statistics Agency attributed the increase to broad price rises across motorcycles, bicycles, and motorcars, with the purchase of vehicles subcategory accelerating to 4.4% year-on-year from 2.8% in August.
According to the ministry of mines, international oil prices increased due to heightened geopolitical tensions, though a stronger Namibia dollar helped offset some cost pressures. Fuel prices remained unchanged for October, with petrol at N$20.37 per litre, diesel 50ppm at N$19.92, and diesel 10ppm at N$20.02.
Housing, water, electricity, gas and other fuels inflation edged up to 3.6% year-on-year in September from 3.4% in August, contributing 0.9 percentage points to headline inflation. The rise was driven by higher electricity and gas costs, which increased by 3% year-on-year, and water and sewerage costs at 4%, while rental inflation eased slightly to 3.7% from 4.2% a year earlier.
Food and non-alcoholic beverages inflation moderated to 4.9% year-on-year in September from 5.2% in August, reflecting lower price growth across most categories except fish, which rose 9.0% year-on-year, meat at 3%, oils and fats at 2.6%, and fruit at 4.8%.
Month-on-month, headline inflation was unchanged , consistent with August. Core inflation remained steady at 3.6%.
FNB Namibia economist Helena Mboti said inflation is expected to remain around 3.5% by year end, with mild upward pressure from transport and housing offset by slightly lower food prices. She said the bank maintains its inflation forecast at 3.5% year-on-year average for 2025, with transport and housing costs likely to keep mild upward pressure on prices whilst good rainfall prospects should continue to support lower food inflation over the medium term.
