WINDHOEK, 15 JUN – The annual inflation rate continued to slow down in May, ending at 3,8 per cent compared to the 6,3 per cent recorded during the same period last year, according to the Namibia Consumer Price Index (NCPI) released on Thursday.
The NCPI, issued by the Namibia Statistics Agency, shows that the slowdown in annual inflation resulted from price levels of clothing and footwear, housing, water, gas and other fuels in the total inflation basket.
On a month-to-month basis, the inflation rate increased to 0,4 per cent compared to the 0,3 per cent registered in April.
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.