The annual inflation rate for the transport sector, which accounts for 14.3% of the consumer basket, continued increasing by 10.6% in July 2021, compared to -1.2% recorded in the corresponding period last year.
Statistician general Alex Shimuafeni said in a recent Namibia consumer price index bulletin that the increases in the transport component were mainly reflected in the price levels of the operation of personal transport equipment that rose by 14.2%, and the purchasing of vehicles that was 9.9% more expensive than a year ago.
“Monthly transport inflation rose by 1% in July 2021, compared to 2.5% recorded in June 2021. The slowdown in inflation was mainly reflected in the public transportation services that were stagnant, compared to an increase of 14.6% recorded in the preceding month,” he explained.
The annual inflation rate for July 2021 increased by 4%, compared to 2.1% recorded in July 2020. Monthly, the inflation rate rose by 0.2%, compared to 0.5% posted in the preceding month.
The main contributors to the inflation rate for July 2021 were transport (1.4 percentage points), and food and non-alcoholic beverages (1.1 percentage points), while alcoholic beverages and tobacco, housing, water, electricity, gas and other fuels, furnishings, household equipment and routine house maintenance and miscellaneous goods and services’ contribution was 0.3 percentage points each.
For July 2021, transport was the main driver of inflation, accounting for 35.8% of the overall inflation change, followed by food and non-alcoholic beverages with 27.4%.
Inflation is the rate at which prices increase over time, resulting in a fall in the purchasing value of money. Shimuafeni stated that the inflation rate is vital for purposes of economic policymaking, especially the conduct of monetary policy, and to consumers in general.