Inflation on downward spiral
The inflation rate observed during the year suggests that the overall price of goods and services appears to be going down – according to the latest numbers released by the Namibia Statistics Agency (NSA) this week.
“The downward trend of the annual inflation rates observed during the 2017 calendar year continues and for the month of May 2017, the annual inflation rate decreased by 0.4 % points, to 6.3% from 6.7% recorded in May of the previous year,” the NSA said.
The decline was as a result of a decrease in the price levels of the categories food and non-alcoholic beverages, health and recreation.
“This decrease resulted mainly from decreases in price levels of food and non-alcoholic beverages which declined to 3.7% from 12.2%, Alcoholic beverages and tobacco which declined to 3.3 % from 7.3%, furnishing, household equipment and routine maintenance of the house which declined to 4.9% from 5.5%, health having declined to 5.4% from 7.4%, while recreation and culture declined to 5.1% from 6.4%,” the NSA said.
On a monthly basis, the monthly inflation rate declined to 0.1% as compared to 0.3% registered in the previous month according to the NSA.
“For the month of May 2017, the major drivers of the annual inflation rate were housing, water, electricity, gas and other fuels (9.8%), education (7.8%), hotels, cafés and restaurants (7.6%) and transport (7.1%),” it said.
For the minor groups, high annual inflation rates were witnessed in education (7.8%), hotels, cafés and restaurants (7.6%); miscellaneous goods and services (5.8%), health (5.4%), recreation and culture (5.1%), furnishing, household equipment and routine maintenance of the house (4.9%), respectively.
Meanwhile, the Bank of Namibia left the repo rate unchanged at 7% on Wednesday during a monetary policy announcement.
STAFF REPORTER
“The downward trend of the annual inflation rates observed during the 2017 calendar year continues and for the month of May 2017, the annual inflation rate decreased by 0.4 % points, to 6.3% from 6.7% recorded in May of the previous year,” the NSA said.
The decline was as a result of a decrease in the price levels of the categories food and non-alcoholic beverages, health and recreation.
“This decrease resulted mainly from decreases in price levels of food and non-alcoholic beverages which declined to 3.7% from 12.2%, Alcoholic beverages and tobacco which declined to 3.3 % from 7.3%, furnishing, household equipment and routine maintenance of the house which declined to 4.9% from 5.5%, health having declined to 5.4% from 7.4%, while recreation and culture declined to 5.1% from 6.4%,” the NSA said.
On a monthly basis, the monthly inflation rate declined to 0.1% as compared to 0.3% registered in the previous month according to the NSA.
“For the month of May 2017, the major drivers of the annual inflation rate were housing, water, electricity, gas and other fuels (9.8%), education (7.8%), hotels, cafés and restaurants (7.6%) and transport (7.1%),” it said.
For the minor groups, high annual inflation rates were witnessed in education (7.8%), hotels, cafés and restaurants (7.6%); miscellaneous goods and services (5.8%), health (5.4%), recreation and culture (5.1%), furnishing, household equipment and routine maintenance of the house (4.9%), respectively.
Meanwhile, the Bank of Namibia left the repo rate unchanged at 7% on Wednesday during a monetary policy announcement.
STAFF REPORTER
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