A researcher from PSG Namibia, a Namibian financial services firm, said on Saturday that Namibia’s average inflation rate is expected to remain subdued in 2020 due to lower oil prices and dismal domestic demand.
Michele Louw, a research analyst at PSG Namibia, said headline inflation declined to 1.6 percent year-on-year in April from 2.4 percent in March, according to the latest consumer price index (CPI) report.
She added that transport price inflation has decelerated sharply after oil prices hit a peak of 86 U.S. dollars per barrel in October 2018.
“This trend is set to continue as we forecast prices to average 37.8 U.S. dollars per barrel, down from an average of 64.4 U.S. dollars per barrel in 2019. Despite acute currency weakness over the past year, pass- through has been limited with retailers unable to pass on higher costs in the recession-hit trading environment,” the researcher said.
Louw added that Namibia’s bread and cereal price inflation should remain under control because the outlook for both South African maize and global wheat production in 2020 is positive. Enditem