The annual rate of increase in the average prices of food and non-alcoholic beverages reached 6.1 percent in January, the quickest in more than 12 months, indicating faster rising prices of most basic commodities.
Figures released by Statistics Botswana recently show annual food inflation at 6.1 percent in January, compared to 5.4 percent in December.
In 2025, food inflation peaked at 5.9 percent in March, whilst averaging 5.4 percent for the whole year. Statistics Botswana numbers indicate that for the 12 months to January 2026, average prices of hot beverages such as coffee and tea, as well as meat and fish, rose the fastest at 15.1 percent, 12.2 percent, and 9.7 percent respectively.
The data agency assigns weights to the various food and beverages in its inflation calculation, with movements in meat prices being weighed the highest in the food inflation calculation, followed by bread and cereals, the latter including key grains such as maize, sorghum and others.
According to Statistics Botswana figures, average bread and cereal prices in the 12 months to January rose by 4.1 percent, compared to 3.1 percent in the 12 months to December 2025. The movements suggest a sharp uptick during January. On the other end of the scale, the average prices of vegetables in the 12 months to January 2026, retreated by 11%, compared to a negative 11.2% in the period to December 2025.
The Bank of Botswana has said it expects inflation to warm up this year, averaging 5.3 percent from 2.67 percent in 2025. Risks to the outlook this year are skewed to the upside due to 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.
The Botswana Energy Regulatory Authority is still considering a request for a 46% average increase in tariffs from the Botswana Power Corporation. Should the increase be granted, it would kick in on April 1.
