Annual inflation in Namibia slowed to 2.4 percent in February, down from 3.6 percent during the same period last year, according to new data released Thursday by the Namibia Statistics Agency (NSA).
The figures were published in the agency’s latest Consumer Price Index (CPI) bulletin.
On a month-to-month basis, inflation remained unchanged at 0.0 percent in February, compared with a 0.8 percent increase recorded in January, the NSA said.
Despite the decline in the headline inflation rate, core inflation — which excludes volatile components such as food and energy — remained higher at 3.2 percent.
According to the statistics agency, the main drivers behind the annual inflation rate were housing-related costs.
The category covering housing, water, electricity, gas and other fuels contributed the largest share to the overall inflation figure, accounting for 1.2 percentage points of the 2.4 percent rate.
This was followed by alcoholic beverages and tobacco, which contributed 0.5 percentage points, while food and non-alcoholic beverages added 0.3 percentage points.
“Together, the aforesaid groupings made up 2 percent of the 2.4 percent annual inflation rate,” the NSA said in its report.
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The agency also noted that several sectors recorded relatively higher annual inflation compared with others.
The largest increase was seen in hotels, cafés and restaurants, where prices rose by 4.8 percent year-on-year.
Housing, water, electricity, gas and other fuels followed with an inflation rate of 4.7 percent.
Other sectors registering notable increases included health, which rose by 4 percent, recreation and culture at 3.9 percent, and furnishing, household equipment and routine maintenance of the house at 3.5 percent.
All other categories recorded annual inflation rates below 3 percent, the agency said.
The slowdown in inflation suggests a relatively stable price environment in Namibia compared with the higher levels seen in previous years.
Economists often monitor core inflation alongside headline inflation to better understand underlying price pressures in the economy, as it removes volatile components such as food and fuel prices.
Although headline inflation eased in February, the higher core inflation reading indicates that some underlying price pressures remain in certain sectors of the economy.
Inflation trends in Namibia are closely watched by policymakers, businesses and consumers as they affect the cost of living, wage expectations and overall economic planning.
The latest figures indicate that housing and utility costs continue to play a major role in shaping consumer prices in the southern African country.
