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Inflation decreases to 3.3 percent in February

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In the January 2019 Consumer Price Index (CPI) released in March 2019, Statistics Botswana published rebased CPI. The CPI was rebased from September 2016 to December 2018. CPI rebasing entails replacing the old base year used for calculating basket weights of the components of the CPI basket to a new and more recent base year, to take into account the change in consumption pattern. CPI rebasing is the best practice as it eliminates the influence of historical trends on the current measurement of inflation. In addition, it provides an opportunity to incorporate new data sources and methodological updates which can result in further revisions.

In February, headline inflation decreased to 3.3 percent from 3.5 percent in January.

According to the latest data from Statistics Botswana, inflation decreased for: alcoholic beverages and tobacco (from 0.7 to 0.4 percent); clothing and footwear (from 1.6 to 1.5 percent); housing, water, electricity, gas and other fuels (from 3.4 to 3.3 percent); furnishing, household equipment and routine maintenance (from 2.1 to 2 percent); recreation and culture (from 1.5 to 1.2 percent); restaurants and hotels (from 2.7 to 2.4 percent); and miscellaneous goods and services (from 6.4 to 6.2 percent). The increase in deflation for food and non-alcoholic beverages (from 0 to -0.2 percent) also contributed to the decrease in inflation. However, this was partly offset by inflation increasing with respect to education (3 to 3.2 percent). Inflation remained unchanged for: health (1.1 percent); transport (9.9 percent); and communication (-9.3 percent).

The trimmed mean measure of core inflation and inflation excluding administered prices decreased from 3.6 to 3.5 percent and 1.8 to 1.6 percent, respectively.

 

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