15 August 2017

Namibia: Inflation Falls Below 6 Percent Since January 2016

Photo: NJR ZA/Wikitravel.org
Namibian dollars.

The month of June marked the sixth consecutive month during which inflation moderated and marked the first time that the headline inflation rate has been below 6% since January 2016, according to research agency, PSG Namibia.

In a report PSG said inflation fell to 5.4% year on year in July, from 6.1% year on year in June 2017. Transport sub-indices and food and non-alcoholic beverages were the major drivers of lower inflation in July.

Meanwhile, the headline rate is expected to decline gradually during the rest of 2017, as food inflation edges lower thanks to base effects.

"We forecast an average inflation rate of 6% for 2017 and that the Bank of Namibia will cut the repo rate by 25 bps at its meeting on Wednesday, given the expected further moderation in inflation, the modest near-term domestic economic growth outlook and the fact that the South African Reserve Bank cut its policy rate by 25 bps last month. South Africa and Namibia's repo rates are not formally linked, but the Bank of Namibia does track the South African Reserve Bank's interest rate moves closely," PSG reported as responds to the latest Consumer Price Index released by the Namibia Statistics Agency.

Meanwhile another research firm, IJG noted that the Rand took a knock following the failed motion of no confidence against president Jacob Zuma, but fears of further immediate downgrades were squashed when S&P (Standards and Poors rating agency) stated that the failed motion did not have ruling on any downgrade scenario.

"With the SARB having cut monetary policy rates in a bid to support growth and SA inflation returning to within the target band, inflation seems set to remain within these levels. However, it remains to be seen whether the currency will deteriorate further," IJG stated.

More on This

Geingob's Address On Economy Based On Hope - DTA

The official opposition party - the DTA -says much of President Hage Geingob's optimism in terms of Namibia's economic… Read more »

See What Everyone is Watching

Copyright © 2017 Namibia Economist. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.