Statistics Botswana, the country’s data authority, on Thursday said that the annual inflation rate was 5.7 percent in May, compared to 7.9 percent in April.
According to Burton Mguni, the statistician general, the 2.2-percentage-point drop is attributed to market stability. “The group indices were generally moving at a stable pace between April and May 2023, recording changes of less than 1 percent, except for the restaurants and hotels group which recorded 1 percent,” said Mguni.
He further indicated that stable index movement was recorded in food and non-alcoholic beverages, transport and miscellaneous goods and services.
The Bank of Botswana’s Monetary Policy Committee (MPC) on Thursday said enhanced productivity, innovation, and the resultant international competitiveness of domestic firms could contribute to the maintenance of domestic inflation within the objective range.
The central bank’s medium-term objective range is 3 to 6 percent and inflation has been above the range since April last year.
“The MPC projects that, in addition to the dissipating impact of administered prices, the economy will operate below full capacity in the short term.
Therefore, inflation is forecast to remain within the objective range into the medium term,” said Moses Pelaelo, governor of the central bank. Enditem
