Inflation remains at three-year highs

Mbongeni Mguni | Thursday July 16, 2026 11:42

The 10.7% is the highest inflation has reached since December 2022, when Russia’s invasion of Ukraine earlier that year triggered a global spiral of food and fuel prices.

Statistics Botswana figures show that between May and June, indices tracking the various goods and services were moving at a stable pace, recording changes of less than one percent. In terms of contribution to annual inflation in June, the transport group weighed the heaviest on the calculation of 10.7% inflation.

This contribution was linked to the continuing impact of the fuel price increases effected earlier this year. The Bank of Botswana expects inflation to average nine percent this year, due to the first and second round effects of the fuel price increases announced in late March.

Risks to the outlook are largely skewed to the upside, mainly from fuel and administered prices as well as regional food-supply pressures.

Consumers may, however, receive some respite from inflation in July, following the fuel price reductions effected by the Botswana Energy Regulatory Authority on July 6. That relief will, however, be short-lived as the energy regulator has also approved a nine percent across the board increase in electricity tariffs due to start on August 1.