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Namibia’s Annual Inflation Moderates

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Namibia’s annual inflation rate eased to 4.2% in March 2025, down from 4.5% a year earlier, offering a mixed picture of price stability as underlying pressures in essential categories continued to strain household budgets.

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The moderation reflects a delicate balance between stabilising global supply chains and persistent domestic cost drivers, particularly in food, housing, and utilities.

Namibia’s annual inflation rate eased to 4.2% in March 2025, down from 4.5% a year earlier, offering a mixed picture of price stability as underlying pressures in essential categories continued to strain household budgets.

According to the latest report by Simonis Storm, the moderation reflects a delicate balance between stabilising global supply chains and persistent domestic cost drivers, particularly in food, housing, and utilities. Monthly consumer prices rose by 0.5%, slightly outpacing February’s 0.4% increase, signalling that inflationary risks remain embedded in critical sectors of the economy.

The food and non-alcoholic beverages category, which accounts for 16.5% of Namibia’s consumer basket, emerged as a primary inflation driver, with prices surging 6.2% year-on-year. This marked a sharp acceleration from the 4.9% increase recorded in March 2024, underscoring renewed volatility in global and local food supply chains.

Within this category, fruit prices skyrocketed by 17.3%, driven by steep hikes for watermelons (36.5%), citrus fruits (31.9%), and avocados (17.9%). Meat inflation climbed to 7.4%, fueled by rising costs for minced meat, biltong, sausages, and mutton, while bread and cereals reversed a deflationary trend from the previous year, posting a 6.1% increase.

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Analysts attribute these spikes to climate-related disruptions, logistical bottlenecks, and higher input costs for farmers, suggesting that food inflation may remain elevated in the near term.