Inflation slows to 3.5% in May 2025, NSA

Annual inflation rate slowed to 3.5% in May 2025, down from 4.9% recorded during the same month last year. The latest data released by the Namibia Statistics Agency (NSA) points to a cooling of price pressures across several consumer categories, offering some relief to households and businesses alike. However, regional disparities remain a concern.

According to the NSA, Zone 3 — which includes the //Kharas, Erongo, Hardap, and Omaheke regions — recorded the highest inflation rate in the country at 4.0%. This region, largely semi-arid and coastal, has seen rising costs, particularly in food and housing-related services. Meanwhile, Khomas Region, designated as Zone 2 in the report, experienced the lowest inflation rate at just 3.1%. Zone 1, which comprises northern and northeastern regions such as Kavango East and West, Kunene, Ohangwena, and Omusati, aligned with the national average at 3.5%.

Namibia Statistics Agency spokesperson Mirjam Shihepo attributed the overall slowdown to a combination of stabilising fuel prices and improved food supply, following a better-than-expected agricultural season. She noted that transport and food price movements were the key drivers behind the downward trend in May. “This is a promising sign for the economy, particularly for low- to middle-income households that are most sensitive to price fluctuations,” said Shihepo.

Despite the encouraging headline figure, analysts caution that the uneven inflation across zones could require region-specific policy interventions. In areas like Zone 3, where inflation remains higher than the national average, vulnerable households are still grappling with rising living costs, especially in basic goods and services.