The Bank of Namibia (BoN) says inflation and private sector credit extension (PSCE) growth have declined during the first six-months of the year. In the fourth Monetary Policy announcement Wednesday, BoN Governor Ipumbu Shiimi said this was despite improvement in the domestic economy. He said average annual growth rate of PSCE stood at 5,6% in the first six months of 2018, lower than 7,6% recorded over the same period last year. Shiimi said the slow growth in PSCE resulted from reduced demand for credit by both the household and corporate sectors, especially in the form of mortgage, overdraft and installment credit. He said annual inflation fell to 3,7% during the first six months of this year, from 7% the over the same period last year. The governor said this was due to lower price increases in the food and non-alcoholic beverages, and housing. He says fuel price increases have pushed up transport cost. Shiimi said the wholesale and retail trade sector continues to decline at a slower pace compared to last year.