Consumers in the Khomas region are expected to tighten their belts even further as inflation in the region is on an upward trajectory. The zonal inflation rates for the month of February 2022 revealed that Khomas region recorded the highest annual inflation rate of 5.3%.
This was revealed by the Namibia Statistics Agency (NSA), in its Namibia Consumer Price Index bulletin for February 2022 released this week.
Khomas region was followed by zone three regions which comprise (Hardap, Omaheke, //Kharas, and Erongo) which recorded an annual inflation rate of 4.1% and zone one (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) recorded the lowest annual inflation rate of 3.9%.
On a monthly basis, the highest inflation rate of 0.3% was registered in zone one, zone two (Khomas) recorded 0.2% while zone three recorded the lowest monthly inflation rate of 0.1%.
Inflation refers to a general progressive increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services, consequently, inflation corresponds to a reduction in the purchasing power of money.
Furthermore, Alex Shimuafeni, statistician general of the NSA said the annual inflation rate for the month under review stood at 4.5%, up from 2.7% recorded in February 2021 an increase of 1.7 percentage points.
He noted the main contributors to the annual inflation rate for February 2022 were transport (1.8 percentage points), food and non-alcoholic beverages (1.0 percentage points), alcoholic beverages and tobacco and furnishing, household equipment and routine maintenance of the house each contributed (0.5 percentage points), housing, water, electricity, gas, and other fuels (0.3 percentages points) and recreation and culture, education and hotels, cafes and restaurants each contributed (0.1 percentage points).
The annual inflation rate for the transport category which accounts for 14.3% of the consumer basket continues to be the main driver of the overall inflation, increasing by 13.2% in February 2022 compared to 0.2% recorded in February 2021.
“The increases in the transport component were reflected in the price levels of operation of personal transport equipment which increased by (18.5% from deflation of 3%) and public transport (from 0.4% to 9.6%). Transport monthly inflation rate increased by 1% in February 2022 compared to 0% recorded in January 2022,” said Shimuafeni.
The operation of personal transport equipment increased by 18.5% in February 2022, compared to a deflation of 3% recorded in February 2021. He noted the increase resulted mainly from price increases witnessed in petrol and diesel which recorded a remarkable increase of 33.3% in February 2022 compared to a deflation of 10.7% registered during the same period last year.
The NSA CEO continued that price for public transportation services recorded an increase of 9.6% compared to 0.4% registered in February 2021. The increase was mainly as a result of price increases registered in taxi transportation that increased by 10.4% in February 2022 compared to 0% registered in February 2021 and bus transportation from 1.9% to 10%.
Purchase of vehicles, prices in the category also increased by 3.7%. The slow increase emanated from all subcategories: motorcycles (from 11.9% to 5.6%), bicycles (from 10.7% to 6%) and motor cars (from 7.9%to 3.7%).