Annual inflation rate slows in June

12 Jul 2018 16:10pm
WINDHOEK, 12 JUL (NAMPA) - The annual inflation rate slowed down in June, ending at four per cent compared to 6,3 per cent recorded during the same period last year.

According to the Namibia Consumer Price Index (NCPI) released by the Namibia Statistics Agency (NSA) on Thursday, the slowdown was attributed to declining price levels of clothing and footwear, housing, water, electricity, communication, hotels and restaurants and household equipment in the total inflation basket.

On a month-to-month basis, the inflation rate decreased to 0,2 per cent compared to 0,4 per cent recorded in May.

Inflation is calculated based on a basket of goods and services, which contain a representative sample of the goods and or services commonly consumed in a country. These are weighted in accordance with the relative percentage of expenditure selected to each of the said goods at household level. The price of these goods and services are then tracked over time to illustrate the change in the cost of living over time.

Namibia’s inflation, however, is largely determined by three categories of the overall NCPI basket: housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; as well as transport, which cumulatively make up just under 60 per cent of the total inflation basket.