Retailers are gearing up for one of the busiest shopping weeks of the year ahead of the Christmas holidays, as low inflation has resulted in bargain deals for consumers, an independent economist has said.
Consumers are expected to benefit big time from cut price offers on certain products such as food, beauty and clothing ranges, while spending is set to surpass 2016 festive period figures.
Annual inflation rate in October was 3.0 percent, registering a drop of 0.2 of a percentage point on the September rate of 3.2 percent, according to latest inflationary figures released by Statistics Botswana (SB) late last week.
“Inflation is derived from a number of factors in the economy,” explained Business Botswana (BB) Regional Manager – North, Kebaabetswe Bogatsu, who also doubles as an economic advisor to the Francistown City Council (FCC).
“Prices of certain products will definitely go down thanks to the inflationary movements in the economy bearing in mind that retailers also take advantage of the festive mood,” he said.
According to Bogatsu, retailers will not be hesitant to cut prices because inflation rate has depreciated to favorable levels.
He said the dropping inflation rates had a bearing on the cutting of the credit bank rate by 0.5 basis.