Botswana Inflation Slows to 7.8% From 9.3%
Statistics Botswana said annual inflation fell to 7.8% in September from 9.3% in August, still above the central bank's 3% to 6% target range. The post Botswana Inflation Slows to 7.8% From 9.3% appeared first on The Rio Times .
Botswana's inflation rate slowed to 7.8% in September from 9.3% in August, according to the government's Statistics Botswana agency. This marks the third consecutive month of deceleration in inflation, which reached its peak at 10.7% in June. While the 7.8% rate is still above the central bank's 6% target, the downward trend may ease pressure on the Bank of Botswana to raise interest rates again.
The national consumer price index increased by 0.1% from August to September, moving from 149.5 to 149.6, with December 2018 set at 100 as the base year. The annual inflation rate of 7.8% is 1.5 percentage points lower than August's 9.3%. In July, the inflation rate stood at 9.4%, while it peaked at 10.7% in June.
Rural areas experienced the fastest annual price growth at 8.6%, compared to 7.7% in urban areas and 7.4% in cities and towns. All three categories saw a slowdown from August. Transport prices, the biggest single driver, contributed 4.0 percentage points to the annual rate, down from 5.1 points in August. Prices for transport rose 15.0% compared to a year ago, following a fuel price shock in March.
Miscellaneous goods and services added 1.1 percentage points, housing and utilities contributed 0.7, food added 0.7, and alcohol and tobacco contributed 0.4. Communication services were cheaper than a year ago, down 0.9%. Within the month, housing, water, electricity, and fuel prices rose 0.6%, mainly due to rent and maintenance materials. Food and non-alcoholic drinks experienced a 0.6% drop, led by a 3.0% decrease in vegetable prices.
The overall decline in Botswana's inflation is attributed to last year's comparison month. The annual rate was 3.7% in September 2025, up from 1.4% due to higher fuel and food prices. Trimmed-mean core inflation, which excludes the most significant price swings, fell to 7.4% from 8.3%. Excluding government-set prices, inflation reduced to 5.3% from 5.9%.
Foreign imports also played a role in Botswana's inflation, with imported tradeables prices up 9.9% year-over-year, compared to 13.0% in August. Prices for domestically produced goods and services rose 6.1%, barely changing from 6.2%. The Bank of Botswana, led by Governor Lesego Moseki, raised its policy interest rate by 2 percentage points to 5.5% on April 30, maintaining it since June 18 and August 27.
The central bank aims for inflation between 3% and 6%, anticipating prices will remain above this range until the first quarter of 2027. Forecasts predict an average inflation rate of 7.9% in 2026 and 4.9% in 2027.
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