Botswana’s central bank has warned that the country’s inflation could remain above its short to medium term target due to various factors.
Moses Pelaelo, Bank of Botswana governor on Thursday said inflation will remain elevated due to factors such as potential increase in international commodity prices beyond current forecasts, persistence of supply and logistical constraints due to lags in production and the economic and price effects of the ongoing Russia-Ukraine conflict.
Pelaelo further said uncertain COVID-19 profile, domestic risk factors relating to possible regular and second-round effects of the recent increases in administered prices and inflation expectations will also lead to generalized higher price adjustments.
“The likelihood of further increases in domestic fuel prices in response to persistent high international oil prices could add upward pressure to inflation,” said Pelaelo.
Botswana’s inflation dropped from 10.6 percent in February 2022 to 10 percent in March 2022, though remaining above the bank’s medium-term objective range of three to six percent. Enditem