Inflation Rate Drops

| November 17, 2014 | 0 Comments

The national inflation rate stands at 4.3 per cent which indicates a drop of 0.2 per cent over the month of September this year.

This was revealed by the Consumer Price Index (CPI) for October 2014 released by Statistics Botswana. Briefing media on November 14, principal statistician Ms Ketso Makhumalo said the annual inflation in October was lower than the 4.8 per cent recorded during the same period in 2013.

Ms Makhumalo noted that the continued drop in the inflation rate was mainly because of the slow movement of prices that was realised in the main components of transport, food and non-alcoholic beverages groups which dropped by 2.7 and 1.9 per cent point respectively.

She said that the annualised inflation rate for food decreased from 4.4 per cent in October 2013 to 2.5 per cent in October this year showing a decrease in all food sections in the 12 month period.

The transport inflation rate declined by over 1.5 per cent in October 2014 as opposed to just over 4 per cent realised in the same month in 2013, she said the drop was due to a decrease recognised in all transport section’s inflation rates.

“It should be understood that the increase in fuel prices has an impact in the CPI basket with the last fuel price increase recorded in 2012,” she said.

She said the inflation rates for urban and rural villages were 4.2 and 4.8 per cent in October 2014 as compared to 4.9 and 6.1 per cent recorded in 2013 while annualised inflation rates for cities and towns remained unchanged at 4.2 per cent.

Source : BOPA

Source : Botswana Daily News

Category: Business & Finance

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