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Namibia’s annual inflation rate slowed to 3.4% in December 2024, down from 5.3% recorded during the same period in 2023, according to the latest data from the Namibia Statistics Agency (NSA). Monthly, price levels rose by 0.2% in December, reflecting a slight moderation from the 0.3% increase recorded in November.
The NSA highlighted that food and non-alcoholic beverages were the largest contributors to annual inflation, adding 1.2 percentage points. Housing, water, electricity, gas, and other fuels contributed 1.1 percentage points, while alcoholic beverages and tobacco added 0.6 percentage points.
The annual inflation rate for food and non-alcoholic beverages, which makes up 16.5% of the NCPI basket, eased to 5.9% in December 2024, down from 7.4% in December 2023. However, the category’s monthly inflation rate increased to 1.0%, compared to 0.7% in November.In the alcoholic beverages and tobacco category, which accounts for 12.6% of the consumer basket, the annual inflation rate dropped to 4.6% from 8.4% a year earlier. This decline was attributed to slower price increases in alcoholic products, including white spirits, beer, and sparkling wines, which had registered double-digit inflation rates in 2023. Tobacco prices also saw slower growth, with the annual inflation rate for the category declining to 6.1% in December 2024 from 6.7% in the same period in 2023. Cigarette prices, in particular, showed a significant deceleration in price increases.
The NSA report revealed regional variations in inflation rates across the country, price disparities were also evident in specific consumer goods. For instance, Zone 2 reported the highest average price for a 750ml bottle of cooking oil at N$31.30, while Zone 1 recorded the highest price for beef stew, costing N$100.30 per kilogram.
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The core inflation rate, which excludes volatile items like food and energy, stood at 3.8% in December, slightly above the headline inflation rate of 3.4%. The moderation in inflation reflects slower price increases across key categories, but regional disparities in consumer pricing persist, the NSA noted.
