Price increases in Namibia are accelerating over the course of a year, primarily driven by transportation and housing-related expenses. According to data from the **Namibian Consumer Price Index (NCPI)**, published by the **Namibia Statistics Agency (NSA)** on Thursday, October 8, Namibia's annual inflation rate stood at 5.4 percent in September 2026, compared to 3.5 percent during the same period in 2025. In monthly terms, inflation was 0.4 percent in September 2026, compared to 0.6 percent in August. The underlying inflation rate, which excludes some particularly volatile components, stood at 4 percent. This underlying rate provides a more stable measure of inflation by filtering out short-term fluctuations in prices. The transportation sector was the main contributor to annual inflation, with a contribution of 2.2 percentage points in September 2026. The housing, water, electricity, gas, and other fuels sector followed, with a contribution of 1 percentage point. Non-alcoholic food and beverages contributed 0.8 percentage points. Other divisions of the **Namibian Consumer Price Index** collectively contributed 0.8 percentage points to annual inflation. These contributions, however, must be considered in relation to the overall rate of 5.4 percent, given the discrepancy between their sum and this figure. This development follows the decision by the **Bank of Namibia** to maintain its key interest rate at 6.75 percent in August 2026. The institution justified this choice with relatively favorable inflation outlooks and sufficient foreign exchange reserves. According to the **International Monetary Fund (IMF)**, Namibia's economic growth slowed to 1.7 percent in 2025, affected by the continued weakness in the diamond sector, a gradual recovery in gold production and livestock, and a slowdown in oil exploration activities. It is expected to reach 2.1 percent in 2026, despite ongoing difficulties in the diamond sector, a decline in gold production, and rising fuel prices. The **IMF** also forecasts a slight increase in inflation in 2026, particularly due to rising fuel prices. These factors indicate that while economic growth is expected to improve slightly, inflationary pressures are likely to persist, especially in sectors reliant on imported fuels and resources.