Transport, housing costs push inflation to 4.1%

The domestic economy continues to face higher living costs, as in May 2026 the country’s annual inflation rate increased to 4.1%, driven mainly by rising transport, housing and utility costs. The latest Namibia Consumer Price Index (NCPI) released by the Namibia Statistics Agency (NSA) shows that annual inflation rose from 3.5% recorded in May 2025. On a monthly basis, prices increased by 1.2% in May, compared to 1.1% in April.

Inflation is the rate at which the prices of goods and services increase over time. When inflation rises, households need more money to buy the same goods and services. This reduces consumers’ purchasing power and can put pressure on household budgets, especially for low-income families.

The NSA said transport remained the largest contributor to inflation, accounting for 1.7 percentage points of the overall annual rate.

“The main contributors to the 4.1 percent annual inflation rate for May 2026 were transport, contributing 1.7 percentage points, followed by housing, water, electricity, gas and other fuels, which contributed 1.2 percentage points,” the agency stated.