the monitor

Inflation tanks below target amid rising food, fuel costs

HEATING UP: Inflation is expected to rise in the coming months 1. PIC MORERI SEJAKGOMO
HEATING UP: Inflation is expected to rise in the coming months 1. PIC MORERI SEJAKGOMO

The rate at which prices for everyday goods and services rise, otherwise known as inflation, has been hovering below the central bank’s target of three to six percent, putting pressure on businesses that are disincentivised to produce more goods while also threatening the stability of the household purse should prices continue to go up.

Botswana’s annual inflation rate rose modestly to 1.4 percent in August 2025, up from 1.1 percent in July, yet it continues to hover well below the Bank of Botswana’s (BoB) medium-term target range.

According to researchers in the Bank’s latest Monetary Policy Report, the persistently low inflation reflects subdued domestic demand amid a slow economic recovery and weak price pressures in key sectors such as transport and housing.

Editor's Comment
Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

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