19 Jul 2016 09:30am
WINDHOEK, 19 JUL (NAMPA) - Namibia recorded a slow increase on monthly inflation mid-2016 due to a decrease in prices of food and non-alcoholic beverages.
According to the Namibia Consumer Price Index (NCPI) for June 2016, inflation rate growth for that month slowed down to 0,3 per cent from 0,5 per cent in May.
Namibia Statistics Agency (NSA) Statistician-General Alex Shimuafeni explained that increases in the prices of food and non-alcoholic beverages ranged from 1,5 per cent to -0,6 per cent; health 0,1 to 0,4 per cent; recreation and culture 1,8 to -0,1 per cent; and hotels, cafes and restaurants 0,7 to -0,2 per cent.
Namibias inflation rate stood at about 6,7 per cent in June 2016, an increase of about 3 per cent since June 2015.
The inflation rate is calculated on a 'basket' of goods and services, containing a representative sample of the goods and or services commonly consumed in a country, and weighted in accordance with the relative percentage of expenditure allotted to each of the said goods at household level.
Shimuafeni noted that the prices of these goods and services are then tracked over time to illustrate the change in the cost of living over time.
As spending patterns change, new products and services are added to the basket, and the basket re-weighted so as to better capture the current spending patterns of the consumer at the current point in time, he stated.
As such, Shimuafeni said the inflation basket is generally reconstituted every five years. In Namibia, the basket was last re-based in 2013, using household expenditure data collected in the 2009/10 Household Income and Expenditure Survey.
He noted that the basket now contains over 350 items, grouped into 12 categories and 55 subcategories, for which prices are collected on a monthly basis from more than 900 retail outlets in the country.