Annual inflation surges ahead

This is the fith successive rise in the inflation rate as prices continue to increase, reflecting a worldwide trend where energy and food prices are continuously ballooning. "In February, headline inflation, as measured by the Consumer Price Index (CPI), rose further to 9.0 percent from 8.4 percent in January.

The major factor contributing to higher inflation was an increase in transport prices where inflation rose from 9.2 percent to 11.2 percent due to rising costs of fuel," a Bank of Botswana statement on the issue said. With further food and oil price increases anticipated on the international market, the Bank of Botswana has abandoned tasking itself with setting and achieving an annual inflation objective, saying the price stability objective can only be realistically achieved  in the medium term (a rolling three year period), in recognition of the time lag for monetary policy to impact on price developments.