Housing drives inflation in January

Namibia's inflation rate moderated to 2.9% in January 2026, marking a decline from the 3.2% recorded in the corresponding period last year, according to the latest price figures released by the Namibia Statistics Agency (NSA).

However, month-on-month pressures have intensified sharply. Inflation surged to 0.8% on a monthly basis, a significant jump from the 0.1% increase registered in December 2025. This acceleration underscores growing price pressures in the economy, despite the year-on-year rate easing. Core inflation, which excludes volatile items, has climbed to 3.2%—exceeding the headline rate and signalling persistent underlying inflationary pressures.

Driving forces behind inflation

The primary driver of the headline inflation rate remains housing-related costs. "The headline annual inflation rate of 2.9% recorded in January 2026 was mainly driven by housing, water, electricity, gas and other fuels, which contributed 1.1 percentage points. This was followed by alcoholic beverages and tobacco, contributing 0.5 percentage points, and Food and non-alcoholic beverages, which contributed 0.4 percentage points," the NSA said.

Essential services and discretionary spending have become increasingly expensive across multiple sectors. According to the NSA, the highest annual inflation rates were recorded in housing, water, electricity, gas and other fuels (4.6%), health (4.2%), Alcoholic beverages and tobacco (3.8%), recreation and culture (3.7%), hotels, cafés and restaurants (3.6%), and furnishing, household 

Regional disparities widen

Inflation is not evenly distributed across the country, with stark regional variations emerging. On the regional front, the zonal inflation rates for January 2026 show that Zone 2 (Khomas region) registered the highest annual inflation rate at 3.8%, followed by Zone 3 (//Kharas, Erongo, Hardap, and Omaheke regions) at 3.2%. Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi regions) recorded the lowest annual inflation rate at 1.9%. These disparities highlight how inflation is concentrated in certain regions, particularly the capital region.

Retail price analysis indicated significant variations in what consumers pay for identical goods depending on their location. "An analysis of average retail prices for selected products in January 2026 shows that consumers in Zone 2 paid the highest price for biltong (per kg) at N$535.71, followed by Zone 1 at N$508.50, while Zone 3 recorded the lowest price at N$430.16," the NSA said. This represents a substantial price differential of over N$100 per kilogram between the most and least expensive zones.

Imported goods tell a different story. "For whiskey (750 ml bottles), consumers in Zone 2 paid the lowest average price at N$258.00, followed by Zone 1 at N$262.80, while Zone 3 recorded the highest price at N$262.85," it added.