Mmegi

Inflation softens marginally

Stabilising: Food prices were amongst the leading drivers of inflation, but the increases are levelling off PIC MORERI SEJAKGOMO
Stabilising: Food prices were amongst the leading drivers of inflation, but the increases are levelling off PIC MORERI SEJAKGOMO

The rate of increase in the prices of goods and services in the economy declined marginally in May, reaching three percent, from 3.1 percent in April.

Statistics Botswana figures indicate that the annual rate of inflation was slightly softer in May owing to base effects associated with the movement of prices in the corresponding period last year.

Statistics Botswana’s data analysis revealed that Miscellaneous Goods & Services, Transport, and Food & Non-Alcoholic Beverages were the major contributors to the May 2024 annual inflation rate.

Separately, the Bank of Botswana has said it expects inflation to remain within the three to six percent objective range in the short and medium term, with risks to the outlook assessed to be balanced. Upside risks to the outlook include higher food prices due to the El Nino drought, international commodity prices increasing beyond current forecasts, the persistence of supply and logistical as well as geoeconomic fragmentation.

The central bank projects that inflation will average 3.6 percent in 2024 and 4.5 percent in 2025, while the latest Business Expectations Survey shows that local firms also expect inflation in the medium term to remain within the objective range. On a quarterly basis, the BoB expects that inflation will average 3.5 percent in the second quarter of this year, before rising to four percent in the third quarter and 3.2 percent in the last quarter.

Editor's Comment
UDC's 100 Days: Please deliver your promises!

We duly congratulate them to have ousted the long ruling Botswana Democratic Party (BDP) from power. Prior to taking power from the BDP, the coalition had made several election promises that are credited for influencing change and swaying the people to vote in its favour.The party had made an undertaking, which its leader and President Duma Boko consistently bellowed in his campaign trail. These undertakings were promises that Batswana would be...

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