Namibia’s overall inflationary environment showed signs of moderation in May 2025, but food prices continued to escalate at a pronounced rate, according to the Consumer Price Index (CPI) bulletin published by the Namibia Statistics Agency (NSA). While the annual headline inflation rate declined to 3.5%—a notable decrease from 4.9% recorded in May 2024—the cost of essential food items remained on an upward trajectory, amplifying concerns about affordability and food security.
The NSA bulletin identified the food and non-alcoholic beverages category as one of the primary contributors to inflationary pressure, with a year-on-year price increase of 5.8%. This outpaced the general rate of inflation, underscoring the disparate impact on consumers’ cost of living.
Among the most affected were fruit prices, which surged by 15.5%, reflecting significant rises in the costs of commonly consumed items such as watermelons, citrus fruits, and avocados. Meat also experienced a marked increase of 8.8%, driven by price hikes in beef, lamb, minced meat, and biltong. These are staple protein sources for many Namibian households, rendering the increase particularly significant in the context of nutritional accessibility.
Additionally, the bulletin reported that oils and fats rose by 9.1% compared to the same period last year, largely attributed to increasing prices of cooking oil and cooking fats. This category remains a critical component of daily food preparation across Namibian households. Fish prices, mirroring this trend, increased by 9.1%, while vegetables climbed by 7.7%.
By contrast, the transport sector provided some relief to the overall inflation basket. Transport costs declined by 1.3% year-on-year in May 2025, bolstered by a 7.8% reduction in the prices of petrol and diesel. This downward trend in fuel prices has helped moderate broader inflationary effects, although the benefits appear not to have significantly translated into the food supply chain thus far.
The structure of Namibia’s inflation basket remains heavily weighted towards food, housing, transport, and alcoholic beverages, which together constitute over 70% of household expenditure, according to the NSA. This composition means that even modest increases in food prices can have outsized effects on household budgets, particularly in lower-income brackets.
While the headline inflation rate suggests an improving macroeconomic outlook, the sustained rise in food prices—especially in core commodities—signals persistent pressures on household affordability. Policymakers and stakeholders in Namibia’s food production and distribution sectors may need to evaluate structural interventions to mitigate these rising costs, especially in anticipation of further seasonal volatility.
For more detailed insights and access to the full report, visit the Namibia Statistics Agency’s official site.
