Upward pressure expected to remain as inflation continues to rise – New Era

WINDHOEK – Continuous upward pressure is expected on inflation, mostly owing to the rising fuel prices, the most recent of which was a 25 cents per litre increase in August, attributed to the adjustment of the fuel tax in August. Although international oil prices have eased slightly, the prevailing sentiment is that the depreciation of the Namibia Dollar will increase the cost of oil in domestic currency which could result in further under-recoveries, meaning the actual costs of fuel are still higher than the pump price.

“If not fully or partly absorbed by the National Energy Fund as in the previous months, under recoveries will lead to fuel price increases. In addition, the municipality has increased bus fares, which will add further pressure on transportation costs,” noted Klaus Schade, Research Associate at the Economic Association of Namibia…