Inflation softens marginally to 8.8%
Mbongeni Mguni | Wednesday September 15, 2021 13:29
However, at 8.8% inflation remains at nine-year highs, a level reflected by the individual movements of prices across the past 12 months.
Data from Statistics Botswana on Wednesday indicates that the various indices making up the Consumer Price Index recorded marginal movements during August, allowing inflation to slightly retreat.
The slight reduction in inflation will be imperceptible for consumers, who have seen a sharp uptick in the prices of most goods and services this year, driven by increases in Value Added Tax and others. Inflation has risen by more than three and a half times since January, eating away at consumers’ disposable incomes.
According to the latest Stats Botswana numbers, prices of oils and fats had risen by more than 23% in the 12 months to August 31, 2021, while bread and cereals were up nearly seven percent and fish up 10.2%.
Prices of various commodities and services are up nearly across the board, except for accommodation services which dropped 5.1% in the 12 months to August 2021. Hospitality service providers dropped their prices over the period in order to attract more local clients due to COVID-19.