Inflation expected to ease after June peak
Namibia's inflation is expected to moderate during the second half of 2026 following a decline in domestic fuel prices, although economists caution that electricity tariffs, administered price increases and food costs remain significant upside risks, Almandro Jansen of Simonis Storm Securities has said.
CHAMWE KAIRA
Namibia’s inflation is expected to moderate during the second half of 2026 following a decline in domestic fuel prices, although economists caution that electricity tariffs, administered price increases and food costs remain significant upside risks, Almandro Jansen of Simonis Storm Securities has said.
The annual inflation rate of 4.4% recorded in June is likely to represent the peak, or close to the peak, of the country’s recent fuel-driven inflation cycle, Jansen said.
The outlook notes that the fuel price reductions implemented in July are expected to provide immediate relief to consumer prices. Petrol prices were reduced by N$1 per litre to N$22.48, while diesel prices fell by N$4 per litre to N$24.26 per litre. These reductions are expected to lower the July Consumer Price Index (CPI) by between 0.3 and 0.5 percentage points.
