The Namibia Statistics Agency (NSA) has revealed that the headline inflation rate has reached 5.6% recorded for October 2026 through its recently released Namibia Consumer Price Index (NCPI) bulletin.
This increase can be compared to an annual headline inflation rate of 3.6% recorded during October 2025 and 3.6 % for September 2026.
The bulletin attributes the increase recorded in October 2026 as primarily driven by driven by transport, which contributed 2.5% points to the overall inflation rate.
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According to NSA statistician general and chief executive officer, Alex Shimuafeni the inflation rate plays a significant role in economic policymaking. "It plays an essential role in the formulation and implementation of monetary policy, whose primary objective is to maintain price stability and regulate consumer spending," he stated. The statistician general highlighted the impact that both low and high inflation rates have on households, businesses and policymaking.
"Generally, low and stable inflation supports sound macroeconomic fundamentals by enabling households and businesses to plan, save, and invest with greater certainty.
In contrast, high or unpredictable inflation erodes the purchasing power of money, especially for individuals on fixed incomes and creates economic uncertainty that hampers long-term economic planning," Shimuafeni explained.
Other NCPI groups which contributed to the increase in the headline annual inflation rate includes housing, water, electricity, gas and other fuels', and 'food and non-alcoholic beverages', each contributing 1% point. Alcoholic beverages and tobacco contributed 0.3% points, while the remaining NCPI divisions collectively accounted for 0.8% points of the annual inflation rate.
The bulletin presents an analysis of the monthly and annual inflation dynamics as measured by the NCPI.
Inflation is the sustained increase in the general price level over a given period, for instance, a month, quarter, or year.
The inflation rate measures changes in the NCPI by comparing prices in the month under review with those of the previous month (month-on-month changes) as well as with the corresponding month of the previous year (year-on-year changes). The NCPI bulletin presents two key measures of inflation to capture Namibia's inflationary dynamics. It covers headline inflation which reflects overall price changes across all goods and services in the economy, including volatile items such as food and energy.
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It also presents core inflation which excludes selected volatile components to provide insight into the underlying, longer-term inflation trend and is therefore considered a more stable measure.
These volatile items typically include food and energy (excluding gas, paraffin, methylate spirits and coal, charcoal), which are prone to significant price fluctuations due to factors such as weather conditions, geopolitical events, or changes in market forces (supply and demand).
On a monthly basis, inflation was recorded at 0.7%, up from 0.4% in the preceding month. Core inflation stood at 3.7 percent, remaining below the headline inflation rate.
The Namibia Consumer Price Index Bulletin is published approximately 15 days after the end of the reference month to which it relates. [email protected] driven by driven by transport.
