Inflation drops slightly in April
Inflation drops slightly in April

Fresh figures from Statistics Botswana (SB) indicate a slight decrease in inflation for the month of April.

The central bank, Bank of Botswana (BoB) has recently said this year inflation will slightly go up, but would certainly remain within the 3–6 percent objective range.

However, figures released by the data collecting agency show that the annual inflation rate in April 2019 was 2.5 percent, registering a decrease of 0.8 percent on the March rate of 3.3 percent.

It is reported that inflation rates for regions between March and April this year indicate that town and cities declined from 3.9 percent to 2.9 percent.

On the other side, urban villages went down from 3.2 percent to 2.6 percent, whereas rural villages also dropped from 2.2 percent to 1.7 percent during the period under review.

According to information from SB, inflation decreased for clothing and footwear, form 1.3 percent to 1.1 percent while for housing, electricity, water, gas and other fuels decreased from 3.2 percent to 1.2 percent.

This is said to be mainly due to a decrease in the rate of price increase in electricity, gas and other fuels.

The increase in deflation for communication, from -9.3 percent to -9.4 percent has reportedly contributed to the decrease in inflation.

Yet, this was partly offset by inflation increasing with respect to food and non-alcoholic beverages and tobacco from 0.1 percent to 0.4 percent and alcoholic beverages and tobacco from 0.6 percent to 2.1 percent.

For furnishing and household equipment, inflation remained unchanged at 1.6 percent and for health also was unchanged at 1.1 percent.

Despite inflation going down in the month of April, overall inflation increased during the first quarter of the year averaging 3.4 percent and was higher than 3 percent average recorded in the same period last year.

BoB said in its April Monetary Policy Statement that the 3.4 percent average inflation for the first quarter of the year was the same figure that has been forecast which had taken into account the adjustment in private school fees as well as higher international commodity prices.

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