Inflation hits 5% as transport costs push up prices

Namibians are paying more for everyday goods and services after the country’s annual inflation rate rose to 5.0% in August 2026, driven mainly by higher transport, housing and food c
osts.

Inflation is the rate at which the prices of goods and services increase over time. When inflation rises, the same amount of money buys fewer goods, meaning households must spend more on essentials such as food, fuel, transport and electricity.

The latest figures released by the Namibia Statistics Agency (NSA) show inflation increased from 4.4% in July 2026 to 5.0% in August, while prices were 0.6% higher than in July.

The increase means many households will feel more pressure on their budgets as the cost of living continues to rise. Families may have to spend more on transport to work, groceries, school expenses and other daily needs, leaving less money for savings or other household expenses.

NSA Statistician-General and Chief Executive Officer Alex Shimuafeni said the report measures changes in the prices consumers pay for goods and services.

He said headline inflation reflects changes in the prices of all goods and services, including food and fuel, while core inflation excludes items whose prices often change sharply because of factors such as weather, global events and supply shortages.

Core inflation stood at 3.8% in August, lower than the overall inflation rate of
5.0%.

Transport was the biggest contributor to inflation during the month, adding 2.0 percentage points to the overall rate. Housing, water, electricity, gas and other fuels contributed 1.0 percentage point, while food and non-alcoholic beverages added 0.8 percentage points.

“The transport category also recorded the highest annual inflation rate at 13.2%, followed by hotels, cafés and restaurants at 6.2%, health at 5.0%, and recreation and culture at 4.9%,” Shimuafeni said.

Higher transport costs often affect the prices of many other goods because businesses pay more to move products across the country. Businesses usually pass these costs on to consumers, making groceries and other essentials more expensive.

Inflation also differed across the country. Zone 2, which covers the Khomas region, recorded the highest annual inflation rate at 5.9%, followed by Zone 3, covering the //Kharas, Erongo, Hardap and Omaheke regions, at 5.2%.

Zone 1, which includes Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa and Zambezi, recorded the lowest inflation rate at 4.0%.

Consumers also paid different prices depending on where they live. A 750ml bottle of sunflower cooking oil cost an average of N$35.12 in Zone 3, compared to N$33.99 in Zone 2 and N$32.89 in Zone 1.

Petrol was also most expensive in Zone 1 at an average of N$25.16 per litre, compared with N$25.11 in Zone 3 and N$24.97 in Zone 2.

Economist Almandro Jansen of Simonis Storm said the latest figures show inflation is rising again after easing earlier this year.

He said August’s inflation rate was the highest since February 2024, with transport once again becoming the biggest driver of higher prices.

“Rising international oil prices have pushed up fuel costs, increasing transport expenses across the economy. Because Namibia imports most of its fuel, higher global oil prices are quickly reflected in local pump prices,” he said.

He said transport alone accounted for about 40% of August’s inflation, up from 32% in July, showing that fuel costs are once again driving overall price increases.

“Inflation is likely to remain high for the rest of the year after fuel prices and fuel levies increased in September. He also said the expected El Niño weather conditions could push up food prices if drought affects agricultural production in the region,” he said.

He expects Namibia’s inflation to average between 4.3% and 4.6% this year, with monthly inflation likely to remain between 4.8% and 6.8% during the rest of 2026 if fuel and food prices continue to rise.

The Bank of Namibia kept the repo rate unchanged at 6.75% in August, but rising inflation could continue to pressure households and businesses as the cost of living increases.

-pmukokobi@nepc.com.na

The post Inflation hits 5% as transport costs push up prices appeared first on New Era.