Headline inflation rose from 8.7 percent in December 2021 to 10.6 percent in January 2022, remaining above the upper bound of the Bank’s medium-term objective range of 3 - 6 percent, and substantially higher than 2.3 percent in January 2021. According to Statistics Botswana, the rise in inflation between December 2021 and January 2022 mainly reflects the upward adjustment in domestic fuel prices effected on December 20, 2021, as well as the increase in public transport fares as reflected by the annual price changes for Transport (from 18.3 to 26.7 percent), and private school fees in January 2022. Meanwhile, there were partially offsetting movements in the annual price change for other categories of goods and services. Annual price changes for the following categories of goods and services also increased: Restaurants and Hotels (from 4.4 to 5 percent); Miscellaneous Goods and Services (7.2 to 7.7 percent); Alcoholic Beverages and Tobacco (from 9.4 to 9.7 percent); Furnishing, Household Equipment and Routine Maintenance (from 5.1 to 5.2 percent); and Communication (from 1.1 to 1.2 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to: Education (from 2.8 to 2.2 percent); Health (from 2.9 to 2.6 percent); Food & Non-Alcoholic Beverages (from 7.2 to 7 percent); Clothing and Footwear (from 4.1 to 4 percent); Housing, Water, Electricity, Gas and Other Fuels (from 8.2 to 8.1 percent); and Recreation and Culture (from 4.1 to 4 percent).
The 16 percent trimmed mean inflation increased from 8 percent to 8.8 percent between December 2021 and January 2022, while inflation excluding administered prices decreased from 7.1 percent to 6.7 percent, in the same period.