Inflation slows to 1.5%

The lower inflation was also helped by base effects as the September fuel price reduction was set against an increase in the same month last year which averaged P1.94, one of the steepest adjustments last year. The decrease this year and the increase last year meant that the annual inflation calculation was significantly lower.

Statistics Botswana figures released on Tuesday indicate that besides fuel, the average prices of other goods and services were largely stable during September, except for alcoholic beverages and tobacco which rose marginally. At its September level, inflation is below the Bank of Botswana (BoB)’s three to six percent medium term objective range which the bank believes is consistent with price and currency stability.