Inflation ticks up

Higher transport fares, building material and food item prices saw inflation tick up to 1.8 percent in September, ending a three-month period during which the rate stayed at one percent or below for three months. Researchers at Statistics Botswana last week noted that the increase in public transport fares, as well as higher building material prices had pushed inflation up marginally. Although the researchers did not specify the building material affected, cement prices have been on the rise for several months this year. September also saw increases in the prices of vegetables, bread and cereals, adding to the overall uptick in inflation. However, even with the increase in September, inflation remains well below the Bank of Botswana’s three to six percent medium term target, continuing a trend that goes as far back as March 2019. The central bank has said it expects inflation to return to within the target range in the third quarter of 2021.