By: Nghiinomenwa Erastus
Consumers are reminded to adjust the amount of money they allocate to their basic goods and services, as they now cost 4,1% more than 12 months ago.
A year ago (November 2020), price average prices increased at a rate of 2,2%- every month, the inflation rate increased by 0,6% compared to 0,2% registered in the preceding month.
This is according to the inflation rate recorded by the end of November 2021.
This is according to the Namibia Consumer Price Index (CPI), which is used to calculate the inflation rate (average price changes) as experienced by the consumers.
The CPI is compiled by the Namibia Statistics Agency and released every month detailing how the prices of basic commodities and services that are mostly consumed have changed.
The CPI highlights that the basket of basic goods is getting more expensive than 12 months ago, and households need to adjust their income to afford the same goods and services.
November 2021 price increase (4,1%) is the highest since 2020, despite relaxed restriction- even on monthly change is the second-highest after a 0,9% change in January this year.
This means for those who have stagnant wages and rigid sources of income, their standard of living plummets as prices of basics go up.
The standard of living in the average person’s material well-being in a given population- represents the income and the comfort individuals in a society are enduring.
NSA indicated that the main culprit pushing up the cost of living is the cost of maintaining a car on the Namibian road, as transport-related goods and services have contributed 1,6 percentage points to the overall increase.
Buying a new car will cost one 8% more now than before within the transport segment.
While maintaining it, it got even pricey as the components that one needs to buy to maintain their car have recorded a price increase of 16,2% compared to a year ago.
Secondly, the food and non-alcoholic beverages commodities prices are rising every month. The 12 monthly price change contributed one percentage point to the overall cost of the consumer’s basket cost increase.
Basic food commodities such as stewing beef are now going for N$88,37 per kg, and chicken, frozen assorted pieces per 1,5 kg, consumers are paying N$72,74 in some places around the country.
Meat products prices have gone up by more than 11% compared to 12 months ago.
Oil and fats keep getting expensive. By the end of November 2021, these products prices have gone up by 13%, compared to last year’s same period.
Fruits are the main culprit, corroding households’ budget, as every month they have increased by 4,3% and compared to November last year they are 16,6% more expensive.
Food is getting more expensive, but those who indulge in alcoholic beverages and smoke a cigarette are paying more together with miscellaneous goods and services, each contributing 0,4 percentage points to the overall inflation.
Alcoholic beverages have recorded a bigger monthly increase of 2,5%, as prices change upward, compared to a year ago alcoholic products have gone up by 2,3%.
Smokers should also budget more tobacco-related products as prices had gone up by the end of November 2021, with the inflation rate recorded at 5,2% compared to the same period.
Miscellaneous goods costs are being pushed up by the cost of financial services, which have recorded a growth in fees paid by 27,2% compared to last year.
When it comes to housing, the cost of maintaining a property is one of the components which has recorded the highest increase in cost, with products needed to maintain the property experiencing a price increase of 8,9%.
The report also highlighted that the basket of goods was getting more expensive, with inflation estimated at 5,4% annually, compared to the cost of services with an inflation level of 2.4%.