Inflation rates in SACU member states are converging
01 Aug 2013 04:30
WINDHOEK, 01 AUG NAMPA) Namibia and Botswana topped the list of Southern African Customs Union (SACU) member states when it came to high inflation rates in May this year.
The inflation rates in both countries stood at 6,1 per cent at the time.
According to the Institute for Public Policy Research (IPPR) researcher Klaus Schade, the spread between the lowest and the highest inflation rates narrowed in SACU member states from 2,4 percentage points in January 2013 to 1,5 percentage points in May this year.
Schade said this in the capital on Wednesday while speaking during a presentation on the state of Namibia's economy.
In particular, he noted, Swaziland managed to contain inflation and brought it down from around nine per cent in 2012 to 5,5 per cent in May this year.
This is the second-lowest inflation rate in SACU, only undercut by Lesotho with 4,6 per cent, he stated.
Since the inflation rate has remained within the band of three to six per cent in South Africa and in order to support investment and economic growth further, the South African Reserve Bank (SARB) left the repo rate unchanged at 5,0 per cent there.
The SACU member states are Namibia, Botswana, Lesotho, Swaziland and South Africa.