Headline inflation rose marginally from 2.3 percent in January to 2.4 percent in February 2021, remaining below the lower bound of the Bank’s medium-term objective range of 3 – 6 percent, but higher than the 2.2 percent in February 2020. According to Statistics Botswana, the marginal increase in inflation between January and February 2021 reflects modest price changes across the range of categories of goods and services. Inflation increased for: Recreation and Culture (from 1.3 to 1.7 percent); Food & Non-Alcoholic Beverages (from 3.4 to 3.7 percent); Transport (from -1.7 to -1.4 percent), Housing, Water, Electricity, Gas and Other Fuels (from 7 to 7.2 percent); Clothing and Footwear (from 2.7 to 2.8 percent); and Communication (from 0.7 to 0.8 percent). However, the upward pressure on inflation was partly offset by inflation decreasing with respect to: Furnishing, Household Equipment and Routine Maintenance (from 2.1 to 1.9 percent); Education (from 1.8 to 1.7 percent); and Miscellaneous Goods and Services (from 1.3 to 1.2 percent). Inflation remained stable for: Alcoholic Beverages and Tobacco (6.5 percent); Health (2.2 percent); and Restaurants and Hotels (1.5 percent).
Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 2.2 percent and 3.4 percent to 2.4 percent and 3.6 percent, respectively, in the same period.