Inflation Slows On Lower Food Costs

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.