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
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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