Inflation slows to 1.5%

Mbongeni Mguni | Wednesday October 16, 2024 12:22

The lower inflation was also helped by base effects as the September fuel price reduction was set against an increase in the same month last year which averaged P1.94, one of the steepest adjustments last year. The decrease this year and the increase last year meant that the annual inflation calculation was significantly lower.

Statistics Botswana figures released on Tuesday indicate that besides fuel, the average prices of other goods and services were largely stable during September, except for alcoholic beverages and tobacco which rose marginally. At its September level, inflation is below the Bank of Botswana (BoB)’s three to six percent medium term objective range which the bank believes is consistent with price and currency stability.

At its last meeting in August, the BoB’s Monetary Policy Committee projected that inflation would remain low into the medium term, averaging three percent in 2024, 3.2 percent in 2025 and 4.7 percent in 2026. Within this forecast, inflation is expected to average 2.1% in the fourth quarter. Risks to the inflation trajectory were assessed to be balanced.