Country Report Namibia May 2011

Outlook for 2011-12: Inflation

Average consumer price inflation, which nearly halved in 2010 to 4.5%, is forecast to rise in 2011, owing mainly to higher fuel prices. Stronger domestic demand, coupled with higher inflation in South Africa (the main source of most of Namibia's consumer goods), further increases in electricity tariffs (both domestic and South African) and historically low interest rates, will push up annual average inflation to 5%. Inflation will increase to 5.3% in 2012 under the impact of stronger economic growth and higher electricity prices.

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