How inflation hit milk, meat, sugar hardest in 2025
Mbongeni Mguni | Thursday January 22, 2026 10:03
The latest data from Statistics Botswana indicates that in the 12 months to December 2025, the average prices of milk and related products such as cheese were up 8.8 percent, meat 8.5 percent, fish 9.3 percent and hot beverages such as coffee, tea and cocoa were up 14.6% on average.
Average prices of sugar, jam, honey, chocolate and confectionery were up 10.4% in the 12 months to December, while those for mineral waters, soft drinks, fruits & vegetables juices were up by 8.2 percent.
On the other end of the scale, the average prices of vegetables declined by 11.2% in the 12 months to December 2025, with indications that most varieties were increasingly available throughout the year, owing to the lifting of the horticultural import moratorium.
Average food inflation moved from 5.1 percent in January to 5.4 percent in December, although within this figure, consumers reported strong swings in the prices of specific items, with major retailers noting that many consumers were resorting to buying in bulk or purchasing “combos” to counter the costs.
The average prices of bread and cereals, which include mealie meal, rice and flour, rose by 3.1 percent in the 12 months to December 2025.
Prices of personal care items, meanwhile, rose by an average 8.2 percent during the year, with some consumers noting rising costs of toilet paper and women’s sanitary items in 2025.
Tipplers were not spared during the year as average prices of different alcoholic beverages rose by 10.9% last year.
Statistics Botswana figures show that generally, inflation was cooler in 2025 at an average of 2.7 percent, compared to 2.8 percent in 2024 and 5.2 percent in 2023. The 2.7 percent average for 2025 was accurately forecast by the Bank of Botswana (BoB) in a briefing on December 4, ahead of the release of inflation figures by Statistics Botswana last week.
However, while inflation in 2025 was softer, the continuation of tightening economic conditions following the economic contraction in 2024, meant that consumers spent the year struggling to cope with price increases.
New central bank governor, Lesego Moseki, said inflation is expected to warm up this year, averaging 5.3 percent.
“Overall, there is a greater risk of inflation being higher than currently projected,” he told journalists at the December briefing. “This is primarily due to the potential cost-push pressures and second-round effects arising from the increases in water and electricity tariffs for businesses, as well as higher domestic fuel prices. “In addition, international commodity prices could rise above current forecasts, and logistical constraints may persist.”
Moseki added that the effects of U.S tariff increases globally are also expected to heighten inflation risks.
On the flip-side, inflation could, be lower than projected if domestic and global economic activity remain subdued, fiscal space remains tight, or if international commodity prices fall. The inflation outcomes could also be affected by possible changes in administered prices not factored in the current projection, he said.
Consumers are waiting to see what level of tariff increase the Botswana Energy Regulatory Authority awards the Botswana Power Corporation for the next financial year. The power utility has asked the regulator for an average 46% increase in tariffs from April 2026, with the adjustment for households proposed at 68%.