Botswana’s annual inflation rate has risen above the central bank’s medium-term target of 3 to 6 percent.
Statistics Botswana on Tuesday announced that the country’s annual inflation rate rose to 6.2 percent in May 2021, compared to 5.6 percent for April 2021.
“The main drivers to the May 2021 annual inflation rate were transport, housing, water, electricity, gas and other fuels, food and non-alcoholic beverages, miscellaneous goods and services and alcoholic beverages and tobacco,” said Statistician General Burton Mguni.
He further said most of the major group indices registered positive growth between April and May 2021, particularly alcoholic beverages and tobacco, restaurants and hotels, transport, clothing and footwear, recreation and culture, health, food and non-alcoholic beverages.
Despite the increase in inflation, the Bank of Botswana (BoB), the central bank, has promised to keep the bank rate unchanged over the next twelve months to support economic growth.
The reserve bank had forecast an inflation rise in the first quarter of the year, to subsequently return to the lower bound of the bank’s medium-term range of 3 to 6 percent.
Statistics indicate that Botswana’s annual inflation rate has recorded a steady rise since the beginning of the year. Enditem