Namibia May Not Fully Benefit From South Africa’s Lower Inflation Target

Namibia’s central bank said it may not reap the full gains from South Africa’s lower inflation target if it is unable to rein in wage-setters and water and electricity prices.

“The relatively high proportion of administered prices in Namibia’s inflation basket may limit the country from fully reaping the benefits of the envisaged lower inflation target set by South Africa,” the central bank said in a statement. To address this, the Bank of Namibia will work with key stakeholders on wages and pricing to assess their impact on inflation and help maintain overall price stability.