- General News
- Friday, 27 January 2012 12:12
- Published Date
- Johanna Absalom
- Hits: 2811
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.
‚ÄúWe envisage further hikes in fuel prices over 2012,‚ÄĚ he said.
On the other hand, the ‚ÄėNamibia Macro-economic Outlook 2011-2012‚Äô report by Investment House Namibia forecast local inflation to rise and end the year at 6.2% year on year.
‚ÄúThe 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%,‚ÄĚ 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.
‚ÄúThus 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,‚ÄĚ he said.
But ‚Äúdepending 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,‚ÄĚ he estimates.
- Articles In This Category
- General NewsFor the first time ever, the Namibia Business Innovation Centre and the United Nations Development Program will embark on a joint outreach programme...Professionals less confident (754 hits)General NewsConfidence among Namibia‚Äôs graduate professionals recorded a slight decline in the third quarter of the year, according to the results of the...General NewsThe proposed future structure of the Meat Corporation includes a co-operative wholly owned by participating Namibian livestock producers, says Kobus...Good news for road crash survivors (1136 hits)General NewsThe Motor Vehicle Accident Funds of Namibia, Botswana, Swaziland and South Africa recently held a multilateral meeting in the capital to discuss...Windows 8 shipped this week (371 hits)General NewsOn 26 October this year, the Windows 8 operating system was officially launched worldwide. The launch in Namibia officially took place on 29 November...New search for ‚ÄúWomen of Excellence‚ÄĚ (822 hits)General NewsStandard Bank Namibia this week reminded all Namibian citizens to nominate outstanding women from their respective communities for the 2014 Women of...General NewsAs part of efforts to attract more tourists to the country as well as to promote domestic tourism, the Namibia Tourism Board recently launched an...New metrology law on the cards (1029 hits)General NewsThe Namibia Standards Institution (NSI) is spearheading the revision of the current metrology law with the aim of enacting a new law that will take...General NewsTelecom Namibia has joined forces with German Internet provider Deutscher Commercial Internet Exchange (De-CIX) and New Telco SA, a Jasco Group...Committed to conservation and development (565 hits)General NewsNamibia made history when it became the first African country to win the bid to host the 2013 Adventure Travel World Summit. According to the...
- Related Articles
- Inflation slows down in March (1381 hits)General NewsDespite a record hike in petrol prices in March, figures released by the Central Bureau of Statistics shows that the annual rate of inflation slowed...Inflation to average 7% in 2012 - BoN (1775 hits)HeadlinesNamibia 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...Inflation continues to surprise (2047 hits)HeadlinesThe 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...Pensioners smile as inflation drops (895 hits)General NewsThere was good news this week for cash flush companies, pensioners and other fixed income investors as Namibia experienced positive real interest...Inflation warning (667 hits)MarketsThe 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
- Engineers launch guide (326 hits)HeadlinesChiedza Maxwell, President of the Association of Consulting Engineers of Namibia (ACEN), and Sophia Tekie, Vice-president of the Engineering Council...HeadlinesThe Namibia Agronomic Board (NAB) recorded the second largest maize harvest marketed through the board. The harvest which is still ongoing, is...Breweries drop Sedibeng share (514 hits)HeadlinesNamibia Breweries Limited has back-peddled on a deal in which it was initially meant to acquire a 15% stake in the Sedibeng Brewery in Gauteng, South...One more telltale sign central banks consult (283 hits)Editors DeskThe slight difference between the Namibian and the South African repo rates, was very brief indeed. This week the South African Reserve Bank...Okahandja in quest for tier one status (326 hits)HeadlinesHer Worship, Valery Aron and her town council are currently banking on the growth of the garden town due to the vast developments taking place and...