Friday, Jul 31st

Last updateFri, 31 Jul 2015 9am

You are here: Home General News Inflation forecast for 2012 remains unchanged

Inflation forecast for 2012 remains unchanged

Inflation forecast will remain unchanged for the year, says Daniel Motinga, senior manager of research and development at First National Bank. According to Motinga, inflation forecast for 2012 remains at 7.1%, with food and transport still the main drivers of inflation as a direct consequence of the resilience in global commodity prices, specifically oil.
“We envisage further hikes in fuel prices over 2012,” he said.
On the other hand, the ‘Namibia Macro-economic Outlook 2011-2012’ report by Investment House Namibia forecast local inflation to rise and end the year at 6.2% year on year.
“The inflation rate was expected to increase marginally during 2011, coming off the low base in 2010, to reach an average of 4.6% in 2011 (4.5% in 2010) with a year-end rate of 6.12%,” it states.
Like Motinga, the report states that food inflation, combined with transport inflation will remain robust.
Transport inflation accelerated by 2.5% month on month in January 2011, significantly higher than the increase of 1.3% in January 2010.
According to the Consumer Price Index data released by the Central Bureau of Statistics, the annualised inflation hovered around 5.3% in September, down marginally from 5.4% recorded in August 2011. The key reason was the marked deceleration in food inflation.
In other developments, Motinga estimates that it is too early to tell whether Bank of Namibia will change its repo rate.
He is of the view that rates will stay on hold for longer.
“Thus rates should stay at current levels for a significant part of this year. We do not think there is room for any rate cuts and therefore the only direction for rates is up,” he said.
But “depending on how the global environment pans out we can see risk of rates going up by at least 50 basis point in the final quarter of 2012,” he estimates.

Articles In This Category
General News
Sakaria Nghikembua, CEO: Operations, Old Mutual says a concerted move to Public Private Partnerships needs to occur, particularly in the area of land...
General News
Public Relations Institute of Southern Africa (PRISA)’s President Solly Moeng said that there are many things that stand in the way of academically...
General News
Presenters from the International Bar Association assisted local experts last week to host the first of a series of anti-corruption workshops in...
General News
With the development of the electronic banking channels, Bank Windhoek has concentrated on ease and convenience, as the bank realised that some...
General News
She used to sell apples and onions at the Katutura Single Quarters, then she tried running a small shebeen, now Uaakoje Annaky Mukuma owns a...
General News
A company that market a new, cheap and easy way of house construction, this week started building a house at the Windhoek Show grounds which they say...
General News
NAMDEB has fully sponsored two young Namibian professionals, Dr. Justine Braby and Hilma Angula, to attend and actively participate in the...
General News
Nampost’s very successful philately section launched their latest edition of collector stamps shortly before the 25th Independence celebrations....
General News
Following revelation that businessman Stephen Gaeseb had posted a picture of Dillish Mathews on Instagram with the words“Second finger from the...
General News
Standard Bank Namibia this week reminded all Namibian citizens to nominate outstanding women from their respective communities for the 2014 Women of...
Related Articles
General News
Despite a record hike in petrol prices in March, figures released by the Central Bureau of Statistics shows that the annual rate of inflation slowed...
Headlines
Namibia is likely to miss the regional inflation target range of 3 to 6% as inflation is set to average around 7% in 2012, the Governor of the Bank...
Headlines
The annual inflation rate has caught many analysts by surprise after falling to 6% in May from 6.4% the previous month. Analysts had predicted that...
General News
There was good news this week for cash flush companies, pensioners and other fixed income investors as Namibia experienced positive real interest...
Markets
The Bank of Namibia (BON) has warned that inflationary pressures will persist for the rest of the year. Speaking at a media briefing in the capital...
Latest Articles
Headlines
The Namibia Professional Hunters Association, NAPHA, last week donated N$30,000 to the Nau Aib Primary School in Okahandja, a town from which the...
Headlines
Since the ostentatious groundbreaking of the Tses Glass factory in June last year, the Groot Systems CEO, Simon Kapenda said that a Ukraine-based...
Headlines
Australian uranium miner and owner of the Langer Heinrich mine, Paladin this week announced that it would cut costs further following an announcement...
Editors Desk
Since the launch of the Tripartite Free Trade Area in June this year, a voluminous body of scholarly work has been generated by many tertiary...
Weather
What Happened A rare phenomenon manifested during the course of the week. Early in the week, the customary high pressure cell sat over South Africa...