Inflation decreases to 2.5 percent in April

In April, headline inflation decreased to 2.5 percent from 3.3 percent in March. According to the latest data from Statistics Botswana, inflation decreased for: clothing and footwear (from 1.3 to 1.1 percent); housing, water, electricity, gas and other fuels (from 3.2 to 1.7 percent � primarily due to a decrease in the rate of price increase in Electricity, Gas & Other Fuels); transport (from 9.9 to 7.6 percent � largely because of a decrease in the rate of price increase for Transport Services); recreation and culture (from 1 to 0.1 percent); education (from 3.2 to 3.1 percent); restaurants and hotels (from 2.8 to 2.5 percent); and miscellaneous goods and services (from 5.7 to 4.9 percent). The increase in deflation for communication (from -9.3 to -9.4 percent) also contributed to the decrease in inflation. However, this was partly offset by inflation increasing with respect to: food and non-alcoholic beverages (from 0.1 to 0.4 percent) and alcoholic beverages and tobacco (from 0.6 to 2.1 percent). Inflation remained unchanged for: furnishing, household equipment and routine maintenance (1.6 percent) and health (1.1 percent).

The trimmed mean measure of core inflation decreased from 3.5 to 2.6 percent, while inflation excluding administered prices increased from 1.6 to 1.7 percent.

Source: Bank of Botswana