Higher food, fuel prices expected

Consumers should brace themselves for even more expensive food and fuel this year. Although motorists received a slight reprieve in fuel prices in December, this downward trend is not likely to continue, says economist Klaus Schade. The drop in fuel prices - by N$1 per litre for petrol and N$0.40 per litre for diesel - slowed down inflation to 5.1% in December. Despite a further drop in fuel prices this month, by N$0.90 per litre and N$1 per litre for petrol and diesel respectively, fuel prices remain higher than in January 2018 and will therefore contribute to the inflation rate, Schade says. “We can expect oil price fluctuations influenced by changing global growth prospects.” Schade points out that white maize and wheat prices on the South African Futures Exchange are currently 49% and 21% higher than in January 2018. “This could result in further price pressure on bread and cereals, while the expected El Niño effect with below-average to average rainfall this season in the region could result in further price increases for crops, vegetables and fruit, while meat prices could decline further due to higher livestock marketing,” Schade says. Namib Mills twice increased the price of its products last year. In October 2018 it increased the price of wheat flour by 20%, rice by about 14%, pasta by 16%, yeast by 15% and mahangu by 12%. Prior to that there were smaller price increases in July: maize meal and wheat flour went up by 3.2%, rice by 4.4% and pasta products by 3.3%.OGONE TLHAGE

Higher food, fuel prices expected

Comments

Namibian Sun 2025-08-14

Please login to leave a comment

Higher food, fuel prices expected

Comments

Namibian Sun 2025-08-14

Please login to leave a comment

Login