Staff Writer
The August annual inflation rate increased by 7.3% compared to 3.4% in August 2021, with transport and food and non-alcoholic beverages contributing to the yearly inflation rate.
Analysis of the average retail prices of selected products for August 2022 revealed that consumers in Zone 2 paid the highest price for White bread (each) at N$12.87, followed by Zone 1 at N$12.12, while consumers in Zone 3 paid the lowest price of N$12.07.
For Pure sunflower oil (750ml), consumers in Zone 1 paid the lowest price at N$40.42, while the highest cost was paid by consumers residing in Zone 2 at N$41.74.
The slight growth in the monthly inflation rate was driven by furnishing household equipment and routine maintenance of the house, which was augmented by 0.9 per cent compared to 0.4% a month earlier. Health recorded an inflation rate of 0.1% compared to a deflation of 0.2% registered last month.
The highest changes in the annual inflation rate were mainly witnessed in the categories of transport (23.2%); hotels, cafes, and restaurants (9.3%); Food and non-alcoholic beverages (8.8%); furnishings, household equipment and routine maintenance of the house (8.6%); alcoholic beverages and tobacco (5.2%) and recreation and culture (5.1%).
The annual percentage change for housing, water, electricity, gas, and other fuels component, which accounts for 28.4% of the consumer basket, increased by 2.0% during August 2022 compared to 1.6% registered during the same period of the preceding year.
The highest percentage changes in this category during August 2022 were mainly observed in the subcategories of Regular maintenance and repair of dwellings (8.5%); Electricity, gas and other fuels; and water supply, sewerage services and refuse collection recorded at 3.9% each.
This category recorded an inflation rate of 0.3 per cent in August 2022 compared to 0.4% during the previous month.
Food and non-alcoholic beverages, which accounts for 16.5% of the NCPI basket, recorded an inflation rate of 8.8% during August 2022 compared to 5.2% registered during the same period last year.
The monthly inflation rate for this category remained unchanged at 0.8% compared to a month earlier.
The food subcategory accounts for 14.8% of the consumer basket in the CPI. Within the food subcategory, bread and cereals account for the highest weight of food items that consumers purchase,
weighting 4.8%, followed by Meat (3.5 %); sugar, jam, honey, syrups, chocolate, and confectionery (1.4 %); vegetables; and milk, cheese, and eggs (1.2 %) each.
The inflation rate for the Food subcategory increased by 8.9% during the period under review compared to 5.5%t registered during the preceding year. The increase was mainly reflected in the prices of Oils and fats (26.1%), fruits (20.0%), and bread and cereals (9.8%)
Oils and fats prices augmented by 26.1 per cent in August 2022 compared to 18.1% registered
during the same period a year earlier. The increase was reflected mainly in the price levels of Cooking oil escalated (from 28.8% to 36.4%), Cooking fats (from 14.6% to 20.4%) and margarine & margarine spreads (from 11.5% to 17.9%).
The price levels of Fruitsincreased by 20.0% in August 2022 compared to 12.0% recorded in August 2021. The increase in the annual inflation rate for this subcategory was mainly observed in
the price levels of avocados (from 37.2% to 76.7%); citrus fruits (from -3.4% to 18.7%); and dried fruits (from -4.1% to 12.0%).
Bread and cereals prices increased by 9.8% during August 2022 compared to 2.3% in the preceding year. The annual inflation rate increase for this subcategory resulted mainly from increases in the price levels of bread, cake flour (from -2.4% to 21.5%); bread (from 6.8% to 14.0%); and Cakes (from 6.0% to 12.0%).
The price levels of sugar, jam, honey, syrups, chocolate, and confectionary increased by 9.7% during the period under review compared to a deflation of 0.5% registered during the same
period last year. The increase was mainly observed in the price levels of Chocolate (from -1.6% to 14.0%); Honey (from 0.1 % to 12.4%); and Ice cream (from -3.7% to 11.8%).
The prices for milk, cheese and eggs increased by 6.7% in August 2022 from 0.9% in August 2021. The increase was mainly observed in the price levels of Cream (from -11.4% to 22.7%), baby milk powdered (from 4.0% to 12.0%), fresh milk, and long-life milk (from -2.3% to 6.4%).
Fish prices increased by 5.4%t in August 2022, compared to 2.2%recorded in August 2021.
The increase in the annual inflation rate for this category emanated from gains witnessed in the price levels of Fresh, chilled & frozen fish (from 2.7% to 7.7%) and bottled/tinned fish (from 0.4% to 5.0%).
The annual inflation rate for the transport category, which accounts for 14.3% of the consumer basket, continues to be the main driver of the overall inflation, increasing by 23.2% in August 2022 compared to 6.2% registered same period of the preceding year. The increase in the Transport component was mainly reflected in the price levels of Operation of personal transport equipment, which increased by 35.4%.
The Transport group recorded an inflation rate of 0.2 per cent in August 2022 compared to 3.0% during the preceding month.
In August 2022, the annual inflation rate for the Alcoholic beverages and tobacco category, which accounts for 12.6% of the consumer basket, rose by 5.2% compared to 2.9% registered during August of the previous year. The increase in the movement of the inflation rate of this group resulted mainly from an increase recorded in the price level of the Alcoholic beverages subcategory, which increased by 5.4%.
Monthly, the inflation rate deflated by 0.3%, compared to an increase of 0.4% in July 2022.
Tobacco prices recorded a slower growth of 4.5% in August 2022 compared to 8.7% in August 2021. The slowdown in the inflation rate was reflected in both subcategories of cigarettes and pipe tobacco.
Prices for Alcoholic beverages rose by 5.4% in August 2022, compared to 1.7% recorded in August 2021. The increase in the price levels of this subcomponent resulted mainly from subcategories of White spirits that increased by 19.5% compared to 10.4% in August 2021.
The zonal inflation rates for August 2022 revealed that Zone 2 (Khomas) recorded the highest annual inflation rate of 7.9%, followed by Zone 3 (Hardap, Omaheke, //Karas, and Erongo) at 7.2% and Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and the Zambezi) which recorded an annual inflation rate of 6.8%.
Zone 1 and Zone 3 recorded an inflation rate of 0.4% each, while Zone 1 recorded a monthly inflation rate of 0.1%.