Business & Finance

Inflation increases to 1 percent in August

Headline inflation rose marginally from 0.9 percent in July to 1 percent in August 2020, remaining below the lower bound of the Bank’s medium-term objective range of 3 – 6 percent, and significantly lower than the 2.9 percent in August 2019. The marginal increase in inflation between July and August 2020 reflects the increase in the annual price changes for some categories of goods and services: Food and Non-Alcoholic Beverages (3.9 to 4.2 percent); Furnishing, Household Equipment and Routine Maintenance (from 1.9 to 2.2 percent); Recreation and Culture (from -0.7 to -0.4 percent); Housing, Water, Electricity, Gas and Other Fuels (from 5.9 to 6.1 percent); Health (1.4 to 1.5 percent); and Communication (0.4 to 0.5 percent). However, the upward pressure on inflation was partly offset by inflation decreasing with respect to: Clothing and Footwear (from 2.4 to 2.3 percent) and Restaurants and Hotels (from 3.1 to 3 percent). Inflation remained stable for: Alcoholic Beverages and Tobacco (6.6 percent); Education (4.7 percent); Miscellaneous Goods and Services (0.5 percent); and Transport (-6.9 percent).
Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 1 percent and 2.8 percent to 1.1 percent and 2.9 percent, respectively, in the same period.

Source: Bank of Botswana