“The easing inflation rate to 5.8 per cent was basically a reflection of your housing utilities slowing down on an annual basis – that is actually despite a whopping 1.7 per cent increase in housing utilities on a month-on-month basis,” Romé Mostert, the head of research at IJG Securities, told CNBC Africa on Thursday.
Namibia's headline consumer inflation decreased from 6.2 per cent in June to 5.8 per cent year-on-year in July. This was its slowest pace since August last year.
On a month-on-month basis, the Consumer Price Index was at 0.6 per cent, up from -0.2 per cent in June.
Household credit has increased in line with the credit extended to corporates and Mostert alluded to the fact that the Private Sector Credit Extension (PSCE) reflected strong growth for the Namibian economy as a whole.
“You see strong disposable income coming through over the past couple of years basically supporting or underpinning growth in PSCE. I feel that the growth in PSCE is actually reflecting some strong growth in the real economy,” he said.