DIESEL, PETROL INCREASE FUEL INFLATION

SUN REPORTER

The rise in retail pump prices for diesel and petrol has pushed up the annual inflation rate, Statistics Botswana has revealed. Meanwhile, Finance Minister Peggy Serame recently highlighted that Botswana’s monetary policy framework focuses on maintaining price stability.

Despite the rise, inflation has remained within the central bank’s objective range of three to six percent, as government monetary policy framework focuses on maintaining price stability.

Statistics Botswana’s latest report has indicated that annual inflation rate stood at 3.2 percent in September 2023, an increase of 2.0 percentage points compared to 1.2 percent in August 2023.

“The group indices were generally moving at a stable pace between August and September 2023, recording changes of less than 1.0 percent, except for the transport group which recorded 5.8 percent,” said Statistician General, Dr. Burton Mguni.

Mguni said the transport group index registered an increase of 5.8 percent, from 146.1 in August to 154.6 in September 2023. “The increase was attributable to a rise in the constituent section indices of operation of personal transport and purchase of vehicles. “The overall increase in the operation of personal transport section index was due to the rise in retail pump prices for diesel and petrol by P2.59 and P1.40 per litre respectively, which effected on the 13th of September 2023,” said Mguni.

Meanwhile, other major contributors to the annual inflation rate in September were food and nonalcoholic beverages as well as miscellaneous goods and services.