Inflation has slowed to an average of 4.8% during the first seven months of 2024, down from 6.2% in the same period last year.

This has enhanced consumers's purchasing power and contributed to more stable prices.

Slower inflation allows consumers to make more informed financial decisions and plan their expenditures more accurately.

During the announcement of the repo rate reduction to 7.5%, Bank of Namibia Governor Johannes !Gawaxab noted that the easing of inflation has largely been attributed to a decline in average food prices.

Inflation has continued to ease, falling from 4.9% in May to 4.6% in the last two months. 

The decrease is especially noticeable in categories such as alcoholic beverages, tobacco, and transport.

Goods inflation slowed to 5.3% in July, down from 5.8% in June, while service inflation increased to 3.4% in July from 2.9% in June.

Looking forward, inflation forecasts for 2024 and 2025 have been revised downward.

The latest projections now estimate average inflation at 4.7% for 2024 and 4.4% for 2025, compared to previous estimates of 4.9% and 4.5%, respectively. 

This downward revision is mainly due to the appreciation of the Namibia Dollar and a moderation in crude oil prices, which have both contributed to the overall easing of inflationary pressures.