Figures released by Statistics Botswana (SB) indicate that the June annual inflation rate fell to 5.8 percent from 6.1 percent in May, settling within the Bank of Botswana's 3-6 percent inflation target. "The annual rate of 5.8 percent realised in June 2013 was lower than the 7.3 percent recorded during the same month in 2012. The decrease on the overall annual rate came from stable prices of commodities especially major components such as transport, food and non-alcoholic beverages, which decreased by 2.5 and 2.8 percentage points respectively," said SB in a statement.
This means general prices have risen by a lower rate of 5.8 percent between June last year and June this year compared to 6.1 between May 2012 to May 2013.Although the modest monthly inflation rate of 0.2 percent played a part to lower annual inflation rate for the month, the falling away of the 2012 large price increases from the calculation was the key factor in the 0.3 percentage drop in the annual rate. According to SB, group indices were stable between May and June 2013, recording changes of less than one percent. The Housing, Water, Electricity, Gas and Other Fuels group index recorded the highest increase of 0.8 percent. This is attributable to the revised water tariffs, which were effected on June 1, 2013.
