Thursday, Apr 24th

Last update08:16:19 AM

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

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 Business Intellectual Property Authority (BIPA) hosted a prize-giving ceremony for the official launch of its logo last week. The logo was...
General News
Standard Bank Namibia has become the first bank in the country to introduce real time interactive expert sessions on its facebook platform. The bank...
General News
Pharmaceutical companies and global health companies have announced a new, coordinated push to accelerate progress towards eliminating or controlling...
General News
Wood shavings, used paper and newspapers have become a means of adequately providing for their families for disadvantaged men. This is happening...
General News
The Namibian Ports Authority (Namport) treated a group of journalists with a day of fun in the dunes as well as a boat ride from Walvis Bay to...
General News
NIPAM senior lecturer, Lister Chaka and CIEDEL director, Nick Heeren with the 27 councillors from different regional councils who attended the...
General News
The European Union (EU) has approved 36 million euro in grants to support regional integration in the Southern African Development Community...
General News
Foreign Affairs Minister Honourable Netumbo Nandi Ndeitwah delivered a statement on behalf of President Hifikepunye Pohamba who expressed his views...
General News
CAPE-TOWN, - Michael Lalor, Ernst & Young’s Director of Strategy and Innovation-Africa Business Center, will outline sub-Saharan Africa’s...
General News
Following calls by the Social Security Commission CEO, Kenandai Tjivikua to reform the Social Security Act, independent researcher Herbert Jauch...
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 Governor of the Hardap Region, Hon. Katrina Hanse-Himarwa introduces Commander Jacobus Meyer, the Hardap Regional Commander of NAMPOL to H.E....
Headlines
Arandis Power (Pty) Ltd is surging foward with plans to construct a 120 Megawatt (MW) thermal power generation Plant and one for waste oil recycling....
Headlines
The development of a 250MW long-term generation facility at the coast in the Erongo Region to alleviate the country’s power woes will not be...
Editors Desk
Stocks, bonds and currencies are jumping on and off the charts in such volatile trading that it mirrors conditions during the final quarter of 2008....
Headlines
Deputy Minister of Fisheries and Marine Resources, Hon. Samual Ankama recently developed a speech on behalf of Hon. Bernard Esau explaining the...