In December, headline inflation decreased to 3.5 percent from 3.8 percent in November. According to the latest data from Statistics Botswana, inflation decreased for: alcoholic beverages and tobacco (from 1.3 to 0.9 percent); housing, water, electricity, gas and other fuels (from 3.7 to 3.5 percent); transport (from 11.6 to 10 percent); recreation and culture (from 1.6 to 1.5 percent); restaurants and hotels (from 3.2 to 2.9 percent); and miscellaneous goods and services (from 6.8 to 6.5 percent). The increase in deflation for communication (from -9.1 to -9.2 percent) also contributed to the decrease in inflation. However, this was partly offset by the rate of decrease in prices (deflation) diminishing for food and non-alcoholic beverages (from -0.8 to -0.2 percent); and inflation increasing with respect to: clothing and footwear (from 1.4 to 1.6 percent); furnishing, household equipment and routine maintenance (from 2 to 2.1 percent); and health (from 1 to 1.1 percent). Inflation remained unchanged for education (5.4 percent).
The trimmed mean measure of core inflation decreased from 3.8 to 3.6 percent, while inflation excluding administered prices increased from 1.7 to 1.8 percent
Source: Bank of Botswana