Headline inflation in Namibia surged to a five-year high in June, coming in at 6.0 percent y/y from 5.4 percent y/y in May. Food, non-alcoholic beverages, and transport costs underpinned the acceleration in inflation in June, with the former jumping to its highest rate in a year at 7.0 percent y/y. With inflation in June reaching the upper end of the central bank’s 3-6 percent target range for the first time since June 2017 and risks tilted to the upside amid elevated food and oil prices, we are likely to see the Bank of Namibia hike its policy rate once again at the next meeting.
