Namibia’s annual inflation rate accelerated to 5% in August 2026, reaching its highest level since February 2024.

The latest figures from the Namibia Statistics Agency (NSA) show that the increase was driven largely by rising transport costs, with fuel prices emerging as a major source of pressure on the cost of living.

Inflation is once again putting pressure on household budgets as the cost of transporting people and goods increases.

In August, Namibia’s annual inflation rate climbed to 5%, up from 4.4% in July. This means that, on average, the prices of goods and services in the consumer basket were 5% higher than they were in August last year.

The monthly inflation rate also accelerated to 0.6%, compared with just 0.1% in July.

Communications Officer at the Namibia Statistics Agency, Mirjam Shihepo, provided an overview of the latest Namibia Consumer Price Index (NCPI) figures.

Transport was the biggest contributor to the increase in headline inflation.

The category recorded annual inflation of 13.2%, with the prices of petrol and diesel increasing by 25.1% compared with August last year.

With inflation now at 5%, consumers are likely to continue feeling pressure on household budgets, while businesses face higher transport and operating costs.

For a household that spent N$1,000 on a particular basket of goods and services a year ago, a 5% increase would mean that a similar basket could cost more today.

However, the actual impact differs from household to household, depending on what people buy and how much they spend on essentials such as food, transport, housing and utilities.

For households, the latest figures underline the importance of careful budgeting, particularly as fuel and transport costs continue to influence the prices of goods and services across the economy.