Triple economic threat 

Triple economic threat 

Namibians are spending more on transport, rent and electricity, even though food prices have started rising more slowly. 

This is according to the latest Consumer Price Index released by the Namibia Statistics Agency for April 2026. The report shows that annual inflation stood at 3.1% in April 2026, lower than the 3.6% recorded during the same period last year. On a monthly basis, however, inflation increased sharply to 1.1% from 0.2% recorded in the previous month. Core inflation, which excludes certain volatile items, stood at 2.8%. This means that while overall price increases have slowed compared to last year, many households are still facing pressure from rising daily living costs. 

“The increase in annual inflation for this category was mainly driven by rising prices in electricity, gas and other fuels, as well as rental payments for dwellings,” the NSA said. Housing, water, electricity, gas and other fuels, which make up the largest share of the consumer basket at 28.4%, recorded inflation of 4.4% in April 2026 compared to 4.1% a year ago. 

“Electricity, gas and other fuel prices increased from 1.5% to 4.0%, while rental payments for houses and flats rose from 4.6% to 4.7%,” the NSA stated. For ordinary Namibians, this means higher monthly expenses for rent, prepaid electricity and cooking fuel. A family renting a house in Windhoek or other towns may now have to cut spending in other areas to cover rent and electricity costs. Transport recorded one of the biggest increases. The transport category rose by 5.0% in April 2026 after recording a decline of 0.3% in April last year. 

“The increase was reflected in the sub-components of operation of personal transport equipment”, the report stated. 

Petrol and diesel prices increased sharply from a decline of 5.6% last year to an increase of 10.3% this year. Spare parts and vehicle accessories also became more expensive. For commuters, taxi operators and motorists, this means transport now consumes a bigger portion of monthly income. Businesses that rely on transport may also increase prices to recover fuel costs. Food prices, however, showed signs of easing. Food and non-alcoholic beverage inflation dropped to 2.0% in April 2026 from 5.6% recorded in April 2025. “While food and non-alcoholic beverage prices are still rising, they increased more slowly in April 2026 than they did during the same period in 2025,” the NSA said. Some staple foods became cheaper compared to last year. Maize meal prices moved from an increase of 9.8% last year to a decline of 6.1% this year. Bread and cake flour also dropped from 3.9% to -2.0%. Rice, macaroni and noodles also recorded slower price increases. Vegetables such as potatoes, cabbage and carrots either became cheaper or recorded slower price increases compared to last year. For many households, this could provide some relief at grocery stores, especially for low-income earners who spend most of their salaries on food. 

“Fruit prices remained high but slowed down compared to last year. Banana, watermelon and citrus fruit prices all recorded slower increases,” the NSA said. Fish prices also declined significantly. The NSA said the slowdown was mainly caused by lower prices for fresh, chilled and frozen fish, which dropped from an increase of 10.3% last year to a decline of 3.6%. Alcohol and tobacco prices also increased at a slower pace compared to last year. Beer, wine and ciders recorded smaller increases, while tobacco prices slowed from 5.4% to 4.8%. 

Although overall inflation is lower than last year, rising transport, rent and electricity costs continue to place pressure on household budgets across the country. 

-pmukokobi@nepc.com.na