Namibia’s inflation rate has slowed, offering some relief to many households across the country.
However, while the overall rise in prices has eased, the cost of living remains pressing in some parts of the nation.
The Namibia Statistics Agency (NSA) reported yesterday that headline inflation – the general rise in prices – stood at 3.5% for the year ending July 2025, down from 4.6% the previous year.
However, core inflation, which strips out unpredictable costs like food and energy, edged up slightly to 3.9%.
This suggests that underlying price pressures are still present in the economy.
The major contributors to the 3.5% annual inflation rate for July 2025 were mainly food and non-alcoholic beverages, contributing 1.2%.
In addition, housing, water, electricity, gas and other fuels contributed 0.9%.
Alcoholic beverages and tobacco contributed 0.8%.
What does this mean for ordinary Namibians?
For families budgeting every dollar, even small increases in the cost of essentials can add up quickly.
A monthly inflation rate increase of 0.1% might seem minimal, but it reflects that prices continue to creep up slowly.
Alex Shimuafeni, the statistician general and CEO of the NSA, revealed that the monthly inflation rate increased marginally by 0.1% in July, up from 0% in June.
“Breaking down inflation by region, Zone 1, covering Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi, recorded the highest inflation rate at 3.9%.
Zone 3, which includes //Kharas, Erongo, Hardap and Omaheke regions, followed at 3.6%.
The capital region, Zone 2 (Khomas), saw the lowest annual inflation rate of 3.1%,” he said.
The NSA examined retail prices for selected essential goods in July 2025.
Consumers in Zone 3 paid the highest price for a 5-kilogramme bag of maize meal at N$79.19, while prices were lower in Zone 1 at N$71.99 and Zone 2 at N$70.87.
For a 400-gramme tin of pilchards in tomato sauce, prices were highest in Zone 2 at N$37.58, followed closely by Zone 3 at N$37.04.
Zone 1 consumers paid the least at N$35.99.
These figures highlight regional differences in living costs across Namibia.
In addition, they reflect the steady but slowing pace of inflation as the economy adjusts to changing conditions.
The inflation rate measures the change in the Consumer Price Index (CPI) for the month under review compared to the previous month (month-on-month changes) as well as to the corresponding month in the previous year (year-on-year changes).
The inflation rate is vital in formulating economic policy, especially conducting monetary policy to maintain price stability and control consumers’ spending,” Shimuafeni said.
In June, the NSA released its latest CPI report, which revealed that annual inflation rose slightly to 3.7% in June 2025, up from 3.5% in May.
The increase is largely driven by rising food prices and escalating rental and service costs despite a decline in fuel prices that helped temper the overall rise.
The CPI is published about 15 days after the end of the reference month to which it relates.
The CPI measured the annual inflation rate (headline inflation) for June 2025, which stood at 3.7% compared to 4.6% registered in June 2024.
On a monthly basis, the inflation rate was 0.0%, a slight drop from 0.2% recorded in May.