According to figures released by the Statistics Botswana yesterday, average inflation for last year eased to 7.5 percent from 8.5 percent, 6.9 percent, 8.2 percent, and 12,6 percent in the previous four years respectively.Among the chief drivers of inflation last year included fuel prices, which went up three times by a cumulative P1.50 per litre, water tariffs (10%), food, alcoholic beverages through the levy, and other administered prices and government levies.
While the average annual inflation rate came in at a percentage point lower, the central bank maintained the benchmark bank rate at 9.5 percent throughout the year citing reduced output in the medium term
In a statement released late December after the last sitting of the Monetary Policy Committee, the central bank said economic output will remain below potential in the medium while inflation is expected to move toward the bank's target in the second half of 2013 but will remain above target in the short run due to temporary factors.
