Namibian consumers worry over 7.9% inflation

Source: APA

Namibian consumers worry over 7.9% inflation

APA-Windhoek (Namibia) Namibia\’s month on month inflation rose to 7.9 percent in February from 7.8 percent in January this year, with rising food prices and transport costs continuing to stock inflationary pressures, APA learnt here Thursday.

Statistics from the Bank of Namibia (BoN) released here indicate that annualised food inflation rose by 15.5 percent in February against the 2007 February figure.

On an annual basis, inflation rose from 6.0 percent in February 2007 to 7.9 percent in February this year.

With the latest hike in fuel prices, analysts warn that inflation could rise to above 8 percent in the coming months.

FNB Bank of Namibia\’s head of research unit, Daniel Motinga, said that inflation could break through the 8 percent barrier in March. “We will not do less than 7 percent in March,” Motinga said.

Shortage of cereals and rising demand has pushed up the prices of maize, with fuel price increases piling secondary effects on inflation.

Namibia\’s finance minister Saara Kuugongelwa-Amadhila early this month said average annual inflation would accelerate to more than 7 percent this year from 6.8 percent in 2007 due to rising food and fuel prices.

LR/nm/APA 2008-03-20