Headline inflation rose from 9.6 percent in April to 11.9 percent in May 2022, the highest value since February 2009 (11.7 percent), remaining above the Bank’s medium-term objective range of 3 - 6 percent, and significantly higher than the 6.2 percent in May 2021. According to Statistics Botswana, the rise in inflation between April and May 2022 mainly reflects the upward adjustment in domestic fuel prices effected on May 13, 2022, as shown in the ‘Transport’ category (from 23.6 to 31.5 percent) and the notable increase in the annual price changes for ‘Food and Non-Alcoholic Beverages’ category (from 6.1 to 8.3 percent) of goods and services. Annual price changes for the following categories of goods and services also increased: Furnishing, Household Equipment and Routine Maintenance (from 4.4 to 5.2 percent); Restaurants and Hotels (from 4.2 to 4.7 percent); Clothing and Footwear (from 3.5 to 3.8 percent); Miscellaneous Goods and Services (7.9 to 8.2 percent); Housing, Water, Electricity, Gas and Other Fuels (from 7.9 to 8 percent); Recreation and Culture (from 4.2 to 4.3 percent); and Education (from 2.5 to 2.6 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to: Alcoholic Beverages and Tobacco (from 5.3 to 4.7 percent); Communication (from 0.7 to 0.4 percent); and Health (from 2.2 to 2 percent).
The 16 percent trimmed mean inflation and inflation excluding administered prices increased from 8.1 percent and 5.9 percent to 9.4 percent and 6.4 percent, respectively, in the same period.