According to Statistics Botswana, headline inflation fell from 9.9 percent in March to 7.9 percent in April 2023, but remained above the Bank’s medium-term objective range of 3 – 6 percent and was lower than the 9.6 percent in April 2022. The decrease in inflation between March and April 2023 was mainly due to the base effects associated with the upward adjustment in domestic fuel prices and Botswana Housing Corporation rentals in April 2022.
Meanwhile, there were partially offsetting movements in the annual price change for some categories of goods and services, while for the rest, prices were unchanged. Inflation fell with respect to: Transport (from 17 to 11.2 percent); Housing, Water, Electricity, Gas and Other Fuels (from 4.6 to 1.7 percent); Food and Non-Alcoholic Beverages (from 17.8 to 16.6 percent); Recreation and Culture (from 3 to 2.6 percent); and Education (from 5.4 to 5.2 percent). The downward pressure on inflation was partly offset by inflation increasing with respect to: Alcoholic Beverages and Tobacco (from 3.2 to 4.4 percent); Miscellaneous Goods and Services (from 8.6 to 9.3 percent); Health (from 3.3 to 3.6 percent); Restaurants and Hotels (from 6.3 to 6.6 percent); and Clothing and Footwear (from 6.2 to 6.3 percent). Inflation remained unchanged for: Furnishing, Household Equipment and Routine Maintenance (7.3 percent) and Communication (2.5 percent).
Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices decreased from 9.2 percent and 8.9 percent to 7.1 percent and 8.3 percent, respectively, in the same period. (Bank of Botswana)