Namibia’s average inflation up 6.8 percent

Namibia’s average inflation rate rose to 6.8 percent during the first five months of 2023 compared to 4.9 percent during the corresponding period in 2022, the Bank of Namibia (BoN) said Wednesday.

Speaking at the monetary policy announcement, BoN Governor Johannes Gawaxab said going forward, overall inflation is projected to average 6.1 percent in 2023.

Gawaxab said domestic economic activity improved during the first four months of 2023 while inflation remained elevated but receded somewhat from its earlier peak. He said the improvement in domestic economic activity was mainly observed in sectors such as mining, manufacturing, wholesale and retail trade, communication, and tourism.

“Going forward, real GDP growth is projected to slow down to 3 percent in 2023 from 4.6 percent registered in 2022 on account of slower growth in the primary and secondary industries,” he said.

The central bank increased Wednesday the repo rate by 50 basis points to 7.75 percent.

Gawaxab said the decision is deemed appropriate to safeguard the one-to-one link between the Namibia dollar and the South African rand.

“It is simultaneously aimed at further containing inflationary pressures, stemming their associated second-round effects, and anchoring inflation expectations,” he said. Enditem