Friday, Oct 31st

Last updateFri, 31 Oct 2014 8am

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
The Public Relations Institute of Southern Africa (PRISA) elected office bearers for the Namibian Region at an Annual General meeting that was held...
General News
It is estimated that more than 250000 Namibians are employed but do not have access to private medical aid and is dependent on government medical...
General News
Standard Bank says that its recently launched Cellphone Banking is not only convenient, fast and reliable but it’s also an easier and quicker way...
General News
A new project for the empowerment of young and future entrepreneurs in Ongwediva was launched at the end of February. The Ongwediva Business...
General News
After losing his fiancee in a tragic road accident in the Sesriem area almost two years ago, Moroccan businessman and founder of the Mayte Hernandez...
General News
FNB Namibia has issued a statement advising customers that they are conducting a Buzz Barometer, a customer loyalty survey. Vicky Muranda, Manager...
General News
The crew operating the Syncrolift in the Walvis Bay harbour recently welcomed the replacement for the old so-called Blou Bul, a monster of a tractor...
General News
In an effort to make financial services accessible to all, Sanlam Namibia Holdings recently commissioned its new mobile van, which will make its...
General News
“While the world has experienced unprecedented economic growth and wealth creation until the onset of the recent and still ongoing global economic...
General News
According to Kudakwashe Ndhlukula, Co-ordinator of the Renewable Energy and Energy Efficiency Institute (REEEI), Namibia, like most developing...
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
Three farmers from the North excelled this week Thursday at a Horticultural Day organised by the Namibian Agronomic Board to award the best farmers...
Headlines
After Trustco released its interim trading statement for the six months ended 30 September 2014 on Wednesday this week, Trustco shareholders will in...
Headlines
The Namibia Logistics Association Secretary General, Harald Schmidt said that the country is fast approaching a point where new road surfaces will...
Editors Desk
The runaway cost of land and housing is defeating all the growth and progress made over the past five years. Two significant events over the past...
31 Oct 2014 (6 hits)
Weather
What Happened? Conditions this week were fairly conventional for this transitional period between the seasons. At the beginning of the week, the...