Inflation peaks on fuel prices

Staff Writer | Friday December 21, 2018 13:06

 

According to the latest numbers from Statistics Botswana, inflation jumped 0.2% in November after the average 35thebe increase in fuel prices effected on November 15.

The transport index, one of 12 used to calculate the Consumer Price Index (CPI), carries the heaviest weighting in the basket of indices used to measure inflation. The weighting means any movements within the index impact significantly on the overall CPI, on which the inflation rate is based.

While the November inflation rate was the highest since November 2014, it is still well within the Bank of Botswana’s three to six percent medium term inflation target.

The central bank has said any upward pressure on inflation will come from administered prices, such as fuel, and levies, while downward pressure will come from continued restrained incomes and slower than expected global growth.