Business & Finance

Inflation increases to 2.8 percent in June

According to the latest data from Statistics Botswana, headline inflation increased from 2.6 percent in May 2019 to 2.8 percent in June 2019. The increase in inflation during June 2019 reflects the rise in the rate of annual change in prices for most categories of goods and services, led by ‘Alcoholic Beverages and Tobacco’ (from 2.9 to 3.4 percent) and Furnishing, Household Equipment and Routine Maintenance (from 1.7 to 2.1 percent). Other categories contributing to the higher inflation are: Food and Non-alcoholic Beverages (from 1 to 1.3 percent), Health (from 1 to 1.2 percent), Recreation and Culture (from 0 to 0.2 percent) and Clothing and Footwear (from 1 to 1.1 percent). The decrease in the deflation (from -9.3 to -0.1 percent � due to base effects associated with the reduction in voice call tariffs in June 2018) in ‘Communication ‘also contributed to the higher overall annual inflation in June than in May. However, the upward pressure on inflation was partly offset by inflation decreasing with respect to Transport (from 7.7 to 6 percent) and Restaurants and Hotels (from 2.5 to 2.3 percent). Inflation remained unchanged for: Housing, Water, Electricity, Gas and Other Fuels (1.7 percent), Education (3.2 percent) and Miscellaneous Goods and Services (4.8 percent).

The trimmed mean measure of core inflation decreased from 2.7 to 2.5 percent, while inflation excluding administered prices increased from 1.9 to 2 percent.

Source: Bank of Botswana