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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.

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Editor's Comment
Celebrate responsibly, put safety first this holiday

“Safety first is safety always”– Charles M HayesAs most people begin travelling across the country to spend the President’s Holidays with family and friends, there is every reason to embrace the joy and togetherness that this period brings.While holiday periods bring joy, they are sadly often accompanied by a rise in road accidents, violent incidents and other avoidable tragedies. Too often, families that set out to celebrate together end...

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