Staff Reporter
WINDHOEK – The annual inflation rate for June 2019 declined from 4.0 percent in June 2018 to 3.9 percent, while on a monthly basis it increased to 0.1 percent from -0.1 percent.
According to the latest figures from the Namibia Statistics Agency, the decline resulted mainly from decreases registered in: Transport (from 7.2 percent to 7.0 percent), Housing, water, electricity, gas and fuel (from 3.2 percent to 2.0 percent), Health (from 5.4 percent to 2.6 percent) and Miscellaneous goods and services (from 4.1 percent to 1.8 percent).
The twelve months average annual and average monthly inflation rates from July 2018 to June 2019 stood at 4.6 percent and 0.3 percent. Corresponding rates recorded during the same period a year earlier stood at 4.6 percent and 0.3 percent respectively.
The average annual and average monthly inflation rates for the period January 2019 to May 2019 were estimated as 4.3 percent and 0.3 percent respectively.
For June 2019, annual price levels of Education (12.0 percent), Transport (7.0 percent), Alcoholic beverages and tobacco (5.5 percent), Hotels, cafes and restaurants (5.4 percent), Recreation and culture (4.0 percent) and Food and non-alcoholic beverages (3.9 percent) were the main drivers of the annual inflation rate.
The Food and non–alcoholic beverage annual inflation rate for June 2019 was estimated at 3.9 percent compared to 3.8 percent registered during the same period last year, resulting in an increase of 0.1 percentage point. The increase in this group emanated mainly from annual price increases recorded in the sub-groups of Vegetables including potatoes and other tubers (from 6.1 percent to 7.3 percent), Sugar, jam, honey, syrups, chocolate and confectionery (from -1.2 percent to 7.2 percent), Bread and cereals (from 3.1 percent to 8.2 percent) and Milk, cheese and eggs (from 0.8 percent to 3.6 percent). The monthly inflation rate for this category decreased to -0.4 percent from -0.3 percent recorded a month earlier.
For June 2019 the annual inflation rate for Alcoholic beverages and tobacco stood at 5.5 percent, up from 5.1 percent recorded in June of 2018. The upward movement resulted from increases in the level of prices for Alcoholic beverages sub-component. The monthly inflation rate for this group increased to -0.04 percent as from -1.2 percent recorded a month earlier.
June 2019 also saw the annual inflation rate for Transport decrease by 0.2 percentage point to 7.0 percent compared to 7.2 percent recorded during the same period of the previous year. The decrease emanated from declines in the price levels of Purchase of vehicles (from 6.6 percent to 3.6 percent) and Operation of personal transport equipment (8.9 percent to 5.0 percent). The monthly inflation rate for this group increased from 0.8 percent to 1.1 percent.
June 2019 further saw a decline in the annual inflation rate for Housing, water, electricity, gas and other fuels to 2.0 percent compared to 3.2 percent recorded in June 2018. The decline resulted from decreases registered in all the sub-components of this group, except Regular maintenance and repair of dwelling which remain unchanged at 2.3 percent. On a monthly basis, the inflation rate for this group remained unchanged at 0.0 percent.
For the minor groups, high annual inflation rates were observed in the groups of Education (12.0 percent), Hotels, cafés and restaurants (5.4 percent), Recreation and culture (4.0 percent), Health (2.6 percent), Miscellaneous goods and services (1.8 percent), Communication (1.1 percent), Furnishing, household equipment and routine maintenance of the house (1.1 percent), while Clothing and footwear still registered the lowest annual inflation rate of 1.0 percent.
According to NSA Statistician General Alex Shimuafeni, the agency planned to rebase the Consumer Price Index (CPI) basket based on the 2015/16 Namibia Household Income and Expenditure Survey (NHIES) results. However, he noted that due to methodological changes in the NHIES 2015/16, the rebasing process could not take place. Simuafeni however noted that the next NCPI rebasing will be done after conducting the next NHIES.