Namibia’s inflation rate slowed slightly in January 2026, but housing and utility costs continued to put pressure on consumers.
The annual inflation rate stood at 2.9% in January 2026, down from 3.2% in January 2025.
On a monthly basis, inflation increased to 0.8% from 0.1% in the previous month.
Core inflation, which excludes certain volatile items, was recorded at 3.2%, slightly higher than the headline rate.
The Namibia Statistics Agency states that the highest annual inflation rate was recorded in the housing, water, electricity, gas and other fuels category.
Statistician general and CEO Alex Shimuafeni said this category was the main driver of overall inflation.
“The Housing, water, electricity, gas and other fuels component, which makes up 28.4% of the consumer basket, recorded an annual inflation rate of 4.6% in January 2026. This is higher than the 2.9% recorded in January 2025.
“The increase was mainly driven by higher prices for electricity, gas and other fuels, which rose from 1.3% to 4.4%, and by rental payments for dwellings for both owners and renters, which increased from 3.2% to 4.9%. On a monthly basis, this category rose by 1.4% compared to 0.4% in the previous month,” he said.
Other categories that recorded notable annual increases include health at 4.2%.
Alcoholic beverages and tobacco at 3.8%, recreation and culture at 3.7%, hotels, cafés and restaurants at 3.6%, and furnishing, household equipment and routine maintenance of the house at 3.4%.
Inflation rates differed across regions.
Zone 2, which covers the Khomas region, recorded the highest annual inflation rate at 3.8%.
Zone 3, which includes //Kharas, Erongo, Hardap and Omaheke regions, followed at 3.2%.
Zone 1, covering Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi regions, recorded the lowest annual inflation rate at 1.9%.
An analysis of retail prices for selected products in January 2026 shows that consumers in Zone 2 paid the highest average price for biltong at N$535.71 per kilogramme, followed by Zone 1 at N$508.50, while Zone 3 recorded the lowest price at N$430.16.
For a 750ml bottle of whiskey, 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.
“Although overall inflation has eased compared to last year, rising housing, rental and utility costs remain the biggest concern for households at the start of 2026,” he said.