By: Nghiinomenwa Erastus
Households spend more of their disposable income on food, specifically on meat products – beef and chicken.
The only meat product which prices are not increasing faster is fish.
Inflation measures how expensive a set of goods and services has become over a certain period, usually a year.
According to the Namibia Statistics Agency, October inflation figures, the food sub-category prices increased by 5,4% during the review period.
Food prices are eroding the dollar’s value every month while the number of food items bought decreases.
“Prices for meat were 12,5% more expensive than a year ago,” according to NSA price assessment.
This makes meat prices to be one of the most significant contributors to higher local food prices.
To the extent that households’ nominal income, which they receive in current money, does not increase as much as prices, they are worse off because they can afford to purchase less.
The meat product getting more expensive is chicken as, by the end of October 2021, chicken prices have increased by 23,8% compared to 2020.
A 1,5kg frozen assorted chicken pieces bag will cost a consumer N$71,25 in the northern and eastern regions, while in Khomas Region, it will cost you N$71,49.
From Erongo to //Karas, the 1,5kg chicken bag will require N$67,83 from one’s disposable income, depending on how many times is consumed and the household size.
Mincemeat is now 16,6% expensive compared to a year ago, while liver and kidney prices have gone up by 15,2% annually, with beef at formal retailer prices has recorded an annual growth of 9,6%, requiring those who consume the product to adjust their budget for beef.
By the end of October 2021, beef per kilogram is N$83,37 for those on the other northern side of the red line.
For the Windhoekers, it will cost you N$78,50 if the prices do not change in the last 15 days.
For those in Erongo, Otjozondjupa and the southern regions, be prepared to pay N$84,49, plus the monthly changes, if any, for the last 15 days.
Planning to include sausages in your shopping list, be cognizant that they were now costing 9,5% more than a year ago, the same thing for pork and lamb meat that also experienced 8,6% and 7% price hikes, respectively.
Observing NSA price change statistics for meat products, fish continues to be the only product in the category to see the slowest pace in rising prices, recording annual inflation of 1,1%.
Apart from meat products, other standouts of agricultural/food products have experienced beyond regular annual price changes.
These include avocados with a 65,8% annual price increase, broccoli at 29,3%.
While cooking oil prices keep increasing with an annual 26,4%), pears are at 24,8%.
Despite being in summer, coffee prices are have recorded 12,5% inflation, and yoghurt is at 9,1%, all on an annual basis in October 2021.
In October 2021, the annual inflation rate increased by 3,6% compared to 2,3% recorded in October 2020.
Every month, the inflation rate slowed to 0,2% compared to 0,3% recorded a month earlier.
Apart from food, other main contributors to the annual inflation rate were transport- the two are growing faster and reducing consumers’ ability to buy/consume more of them.
Inflation is calculated based on a basket of goods and services, containing a representative sample of the goods and services commonly consumed in a country.
The goods and services are weighted per the relative percentage of expenditure allotted to each said goods at the household level.
The price of these goods and services is tracked to illustrate the change in the cost of living over time.
As spending patterns change, new products and services are added to the basket, and the basket is reweighted to better capture the current spending patterns of the consumer at the current point in time. Email: email@example.com