Namibia’s annual inflation rate for February 2021 increased to 2.7% compared to 2.5% recorded in February 2020. On a monthly basis, inflation decreased to 0.4% compared to 0.9% recorded in the previous month.
According to the Namibia Consumer Price Index bulletin for February 2021, released by Namibia Statistics Agency (NSA) last week, the growth in the annual inflation rate for February 2021 was mainly as a result of increases witnessed in the price levels of food and non-alcoholic beverages from 2.8% to 5.5%, housing, water, electricity, gas and other fuels from -0.5 % to 1.5 %, communication from 1.4% to 3.1%, alcoholic beverages and tobacco from 2.7% to 4.2%, health from 2.9% to 3.9% and miscellaneous goods and services from 6.2% to 6.6%.
The inflation rate measures the change in the consumer price index (CPI) for the month under review to the previous month (month-on-month change) as well as to the corresponding month in the previous year (year-on-year change). Statistician General of NSA, Alex Shimuafeni said the inflation rate is vital for purposes of economic policy-making, especially the formulation of monetary policy and to consumers in general.
The zonal inflation rates for the month of February 2021 revealed that, zone 1 which consist of Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi, recorded annual inflation rate of 2.4%. Zone 2 (Khomas) obtained 2.6% and Zone 3 (//Kharas, Erongo, Hardap and Omaheke) registered 3.5%.
On a monthly basis, Zone 1 recorded 0.5%, Zone 2 recorded 0.2% while Zone 3 monthly inflation rate was 0.5%.
The analysis of the average retail prices for some of the basic products consumed by the households for the month of February 2021 indicate that cake flour (2.5kg), in zone 1 recorded the highest price of N$46.72 while Zone 2 recorded the lowest price at N$41.36. For milk (1 litre), consumers in Zone 2 paid the lowest price at N$19.69 while the highest price was observed in Zone 1 at N$20.86.