The Bank of Namibia (BoN) this week increased the repo rate by 50 basis points, and this has made inflation the main talking point in households.
By historic standards, inflation is not at its highest, but it has become a more prevalent issue in 2023 than it was in 2016/17.
The head of research at Cirrus Capital, Robert McGregor, believes this is because inflation this time around affected lower-income households.
Namibia has recorded an increase in inflation during 2022 compared to 2021, posing great pressure on the cost of living.
This was revealed in the Bank of Namibia 2022 Annual Report, launched in the capital on Wednesday.
Overall inflation rose significantly from 3,6% in 2021, to 6,1% in 2022.
The high inflation was mainly driven by transport inflation due to high international oil prices, aggravated by exchange rate depreciation.
The Bank of Namibia has increased the repo rate by 25 basis points, from 6.5 to 7 percent.
The increase, the bank says is to maintain inflation expectations, protect the peg arrangement with South Africa and meet international financial obligations.
