Inflation meets BoB's target

After shedding 0.3 percentage points to 7.2 percent in August, the inflation rate again lost 0.4 percentage points to settle at 6.8 percent last month.

This development brings down the inflation rate to within the BoB inflation objective of between 4-7 percent for this year. The bank attributes the fall to the stabilisation in food prices in September, which only registered a marginal 0.1 percent rise down from 0.8 percent in August. Food inflation, which contributes a significant chunk to the overall index, is directly related to development in the South African markets where prices have been firming sharply. Botswana imports 90 percent of its food requirements from South Africa.