Namibia revises inflation to 3.9 pct for 2021

WINDHOEK, Aug. 19 — Namibia’s overall inflation is projected to average around 3.9 percent for 2021, slightly higher than the previous forecast of 3.6 percent, said Governor of the Bank of Namibia Johannes Gawaxab in a monetary policy announcement Wednesday.
Gawaxab said the annual average inflation increased to 3.5 percent during the first seven months of 2021, compared to 2.1 percent for the corresponding period in the previous year.
“The increase in inflation was mainly driven by the food and transport categories. This was on account of supply constraints particularly for meat and a rise in international oil prices, respectively,” he said, noting that overall inflation moderated to 4 percent in July 2021 from 4.1 percent in June.
Meanwhile, Gawaxab said the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 3.75 percent.
“This decision was taken following a review of global, regional and domestic economic and financial developments. It was noted that higher inflation is increasingly posing a risk to the sustainability of the current level of the repo rate,” he said, adding that the rate remains appropriate to continue supporting the weak domestic economy. (Xinhua)