Namibians spending more on transport

WINDHOEK, 12 JUL  – Namibians continue to spend more on transport, but are benefiting from lower food prices, the latest Namibia Consumer Price Index (NCPI) shows.

The NCPI released by the Namibia Statistics Agency (NSA) on Thursday shows that the month-to-month inflation in transport went up to 1,6 per cent compared to 0,4 per cent in May.

The annual inflation rate for transport stood at 7,2 per cent compared to five per cent recorded in June 2017.

The index shows that expenditure on operation of personal transport equipment increased from 5,8 per cent in June 2017 to 8,9 per cent in June 2018.

Public transport services increased from negative 0,5 per cent in June 2017 to 1,8 per cent in June 2018.

The index further indicated that inflation in food and non-alcoholic beverages decreased by 0,8 percentage points over the past year.

The decrease emanated from jam, sugar, honey, syrups, chocolate, coffee, tea, soft drinks and juices, milk and cheese.

The annual inflation rate for alcoholic beverages and tobacco increased to 5,1 per cent compared to 3,0 per cent registered in June last year.

The upward movement resulted from an increase in the level of prices of alcoholic beverages which increased from 3,2 per cent to 5,3 per cent and tobacco which also increased from 2,3 per cent to 4,1 per cent recorded in June 2018.

Inflation is calculated based on a basket of goods and services, containing a representative sample of goods or services commonly consumed in a country.

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.

(NAMPA)