News Column

Inflation Unchanged in June At 6,1 Percent

July 16, 2014

On a monthly basis, inflation was driven by increases in the prices of goods in the category of alcoholic beverages and tobacco as well as furnishings, household equipment and routine maintenance of the house, all of which expanded by 0,8% when compared to the preceding month.

The Namibia Statistics Agency said yesterday that annual inflation remains driven by price increases in the categories of transport and food and non-alcoholic beverages, which have expanded by 10,7 and 10,1%, respectively. As such, the all items index now stands at 108,9 points, up from 102,7 points in June 2013.

The Agency said the June rate confirmed the continuation of the general upward trend in inflation seen since November 2013. The year leading up to November 2013 saw a decline in inflation from 7,5% to 4,4%, however once this inflection point was reached, the trend turned and strong increases in inflation has been seen subsequently.

"This change in trend is largely on account of increases in global commodity prices, particularly fuel and to a lesser extent food, exacerbated by a weakening of the Namibia dollar against major currencies," the agency said.

It said following unprecedented monetary and fiscal stimulus in Namibia over recent years, increases in national disposable income appear to be contributing to demand side inflation, which can be seen coming through in a number of administered prices, including electricity and public transport costs.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters