Namibia’s inflation eased slightly to 3.5% year-on-year in May 2025, down from 3.6% in April, mainly due to a sharp drop in transport costs driven by lower fuel prices. However, core inflation rose to 4.1% reflecting ongoing price pressures in services, rentals, and education. According to FNB Namibia's CPI review for May 2025, transport inflation fell to -1.3%, easing overall inflation, food prices increased especially meat (+8.8%) and fruits (+15.5%) keeping inflation pressures alive. Housing inflation softened but rental costs remain high. Month-on-month inflation held steady at 0.2%, with seasonal housing cost drops offset by rising food and alcohol prices. Lastly, Regional disparities persist, with zones 1 (northern and north-eastern regions) and Zone 3 (Kharas, Erongo, Hardap, Omaheke) facing higher inflation, impacting low-income households most. Inflation is expected to ease further to around 3.3% in June and will likely stay below 4% for the rest of 2025. The cost of living remains a challenge, especially for lower-income Namibians. Report: Joseph Jeremia Photo: Contributed