23 Apr 2017

Consumer prices in Botswana increased by 3.5 per cent year-on-year in March following a 3.4 per cent rise in the previous month, according to a report from Statistics Botswana released this week.

The report further explains that the annual inflation rate in March depicts that it has increased by 0.1 per cent to 3.5 per cent; an increase of 0.1 of a percentage point on the February 2017 rate of 3.4 per cent.
On a monthly basis, consumer prices went up 0.5 per cent compared to a 0.2 per cent rise in February, according to the report.

“Inflation Rate in Botswana averaged 7.43 per cent from 1997 until 2017, reaching an all-time high of 15.06 per cent in November of 2008 and a record low of 2.60 per cent in August of 2016,” it says.
Food and non-alcoholic beverages account for 16.51 per cent.

Housing, water, electricity, gas and other fuels account for 14.9 per cent while miscellaneous goods and services account for 10.55 per cent, says the report.
However, an economic analyst, Ms Oaboloka Moetedi said as inflation rises, businesses may be forced to raise their prices and banks will be forced to raise interest rates in order to maintain a profit margin and higher rates meant that marginal businesses will fail.
“High inflation harms everyone as there will be increased costs and increased unemployment,” she noted. end