According to Statistics Botswana, headline inflation declined from 10.6 percent in February to 10 percent in March 2022, remaining above the Bank’s medium-term objective range of 3 - 6 percent, and substantially higher than the 3.2 percent in March 2021. The decline in inflation between February and March 2022 mainly reflects the base effects associated with the increase in domestic fuel prices in the corresponding period last year, as shown by ‘Transport’ (from 27 to 23.8 percent). Meanwhile, there were partially offsetting movements in the annual price change for other categories of goods and services. Inflation fell with respect to: Furnishing, Household Equipment and Routine Maintenance (from 5.4 to 5 percent); Alcoholic Beverages and Tobacco (from 9.6 to 9.3 percent); Restaurants and Hotels (from 4.9 to 4.6 percent); and Health (from 2.7 to 2.6 percent). The downward pressure on inflation was partly offset by inflation increasing with respect to: Housing, Water, Electricity, Gas and Other Fuels (from 7.8 to 8 percent); Communication (from 1.2 to 1.4 percent); Recreation and Culture (from 3.7 to 3.9 percent); Food and Non-alcoholic Beverages (from 6.8 to 6.9 percent); Clothing and Footwear (from 3.9 to 4 percent); Education (from 2.3 to 2.4 percent); and Miscellaneous Goods and Services (from 8 to 8.1 percent).
Similarly, the 16 percent trimmed mean inflation decreased from 8.8 percent to 8.6 percent, while inflation excluding administered prices remained constant at 6.8 percent, in the same period.