Inflation softens marginally to 8.8%

Trying times: Local inflation is at a nine year high PIC PHATSIMO KAPENG
Trying times: Local inflation is at a nine year high PIC PHATSIMO KAPENG

Inflation dropped marginally from 8.9% in July to 8.8% in August, the first time the key rate has weakened since June last year.

However, at 8.8% inflation remains at nine-year highs, a level reflected by the individual movements of prices across the past 12 months.

Data from Statistics Botswana on Wednesday indicates that the various indices making up the Consumer Price Index recorded marginal movements during August, allowing inflation to slightly retreat.

The slight reduction in inflation will be imperceptible for consumers, who have seen a sharp uptick in the prices of most goods and services this year, driven by increases in Value Added Tax and others. Inflation has risen by more than three and a half times since January, eating away at consumers’ disposable incomes.

According to the latest Stats Botswana numbers, prices of oils and fats had risen by more than 23% in the 12 months to August 31, 2021, while bread and cereals were up nearly seven percent and fish up 10.2%.

Prices of various commodities and services are up nearly across the board, except for accommodation services which dropped 5.1% in the 12 months to August 2021. Hospitality service providers dropped their prices over the period in order to attract more local clients due to COVID-19.

Editor's Comment
A Call For Government To Save Jobs

The minister further shared that from the 320 businesses that notified the Commissioner of Labour about their plans to retrench, 20 were acceded to, which resulted in 204 workers being retrenched during April 2020 and July 2021.The retrenchments were carried out while the SoE was in place, meaning the companies that succeeded must have had solid reasons, despite the strict SOE regulations imposed on businesses to not retrench. We are left with...

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