Namibia Consumer Price Index (NCPI) inflation rate eased to 3.2% in August 2025, compared to 4.4% in the same month last year, the Namibia Statistics Agency (NSA) announced yesterday.
On a monthly basis, inflation remained flat at 0.0%, down slightly from 0.1% recorded in July.
The main contributors to the annual inflation rate of 3.2% in August 2025 were ‘Food and Non-Alcoholic Beverages’ contributing 1.0%, followed by ‘Housing, Water, Electricity, Gas, and Other Fuels’ and ‘Alcoholic Beverages and Tobacco’ which added 0.8% each.
Alex Shimuafeni, Statistician and chief executive officer the NSA highlighted varying inflation rates across the country’s three zones. Zone one covering Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi posted the highest inflation at 3.6%.
Zone three which includes //Kharas, Erongo, Hardap and Omaheke registered 3.2 percent, while Zone 2 (Khomas) reported the lowest rate at 2.9%
“Despite Khomas showing the lowest overall inflation, consumers in the capital still paid the highest prices for certain food items. For instance, the average cost of apples (1kg) in Zone 2 was N$41.42, compared to N$38.66 in Zone 3 and N$33.55 in Zone 1. Similarly, a 2.5kg bag of white bread flour cost N$54.93 in Zone 2, higher than N$50.99 in Zone 1 and N$49.58 in Zone three,” he said.
The NSA also reported that core inflation which excludes volatile items such as food and energy products like gas, paraffin, methylated spirits, coal and charcoal stood at 3.6 percent, slightly above the headline rate.
“Core inflation is an important indicator because it filters out temporary shocks and shows the underlying price trends in the economy. While headline inflation has slowed, the fact that core inflation is higher suggests that structural price pressures remain,” he said.
Shimuafeni noted that regional price disparities continue to affect consumers differently.
“Although overall inflation has eased, the reality is that households in different regions face very different costs for basic goods. In Khomas, for example, we see much higher retail prices compared to other zones, which puts added strain on urban consumers,” he said.
He added that the NSA will continue monitoring these trends closely.
“Our role is to provide reliable data so that policymakers, businesses, and households can make informed decisions. The latest figures show that while the economy is stabilising, vigilance is still required when it comes to consumer prices.”