Inflation down slightly

MONTHLY inflation for August decreased slightly to 0,7 per cent from 0,8 per cent in July.The annual inflation rate, at 2,2 per cent, was much lower than that of August 2004, which stood at 4,2 per cent.

According to the Central Bureau of Statistics, the decrease in monthly inflation resulted from a monthly fall in the prices of recreation and culture and health services. The index for food and non-alcoholic beverages rose from 12,3 per cent in July to 14,3 last month.The rise was attributed to price increases for milk, cheese, eggs, vegetables, soft drinks and meat.Namibia’s year-on-year inflation has remained comparatively low, but economists say rising fuel prices are likely to push up inflation.Fuel prices are going up tomorrow – petrol by 40 cents a litre and diesel by 39 cents a litre.This is the second time in just over a month that fuel prices have increased.The Minister of Mines and Energy, Erkki Nghmitina, said because of increasing crude oil prices, the ministry had no option but to pass these increases on to the consumer.The index for food and non-alcoholic beverages rose from 12,3 per cent in July to 14,3 last month.The rise was attributed to price increases for milk, cheese, eggs, vegetables, soft drinks and meat.Namibia’s year-on-year inflation has remained comparatively low, but economists say rising fuel prices are likely to push up inflation.Fuel prices are going up tomorrow – petrol by 40 cents a litre and diesel by 39 cents a litre.This is the second time in just over a month that fuel prices have increased.The Minister of Mines and Energy, Erkki Nghmitina, said because of increasing crude oil prices, the ministry had no option but to pass these increases on to the consumer.