Inflation Slows On Lower Food Costs

By Business Reporter | Monday November 16, 2009 00:00

 

The CSO said inflation slowed to 6.9 percent year-on-year in October compared with 7.0 percent in September. On a monthly basis, CPI stood at 0.1 percent, from 0.3 percent in September.The Bank of Botswana has forecast consumer inflation to stabilise inside its 3 to 6 percent target range in the medium term. The central bank left its main lending rate unchanged at 11 percent in October, citing upside risks to inflation outlook from rising international oil prices. The bank had cut its bank rate by a cumulative 200 basis points up to August.According to CSO, the towns and cities' inflation rate went up by 0.4 of a percentage point from 5.4 percent in September to 5.8 percent in October.

The urban villages' inflation rate fell by 0.2 of a percentage point from 7.1 to 6.9 percent between September and October. The rural villages' inflation rate was 9.5 percent in October, down by 1.3 percentage points on the September rate of 10.8 percent. 

 In October 2009, the national Consumer Price Index was 130.4, an increase of 0.1 percent on the September level of 130.3. The towns and cities' index increased by 0.2 percent between September and October, from 128.3 to 128.5, while the rural villages' index went down by 0.2 percent - from 135.4 to 135.1 between the two months. The urban villages' index fell by 0.1 percent, from 130.3 in September to 130.2 in October. All group indices showed stable movements between September and October with Furnishing, Household Equipment & Routine Maintenance recording a change of 0.3 percent as the highest.  The CSO said the Trimmed Mean Core Inflation rate stood at 5.8 percent in October, a decrease of 1.0 percentage point from 6.8 percent in September. The Core Inflation rate by exclusion recorded a drop of 1.5 percentage points from 12.6 percent to 11.1 percent between September and October.