Headline inflation eases to 3.2% in August

Headline inflation in Namibia slowed to 3.2% year-on-year in August 2025, down from 3.5% in July and below market expectations of 3.5%. The slowdown was largely driven by softer food price pressures after improved regional rainfall boosted crop production.

Food inflation fell from 6.1% in July to 5.2% in August, providing some relief for households. FNB economist Helena Mboti noted that this trend reflects a combination of improved harvests and stabilizing food costs.

While the easing in inflation is welcome, economists say continued monitoring is necessary as other factors, such as fuel and transport costs, could influence the overall inflation outlook in the coming months.