According to Statistics Botswana, headline inflation rose from 8.2 percent in June to 8.9 percent in July 2021, remaining above the upper bound of the Bank’s medium-term objective range of 3 - 6 percent, and significantly higher than the 0.9 percent in July 2020. The rise in inflation between June and July 2021 is mainly due to the upward adjustment in domestic fuel prices in July 2021, with the annual price change for Transport increasing from 17.4 percent to 20.19 percent. Annual price changes also increased with respect to: Furnishing, Household Equipment and Routine Maintenance (from 3.7 to 4.3 percent); Miscellaneous Goods and Services (from 6 to 6.6 percent): and Communication (from 1.6 to 1.7 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to: Alcoholic Beverages and Tobacco (from 9.3 to 8.2 percent); Food & Non-Alcoholic Beverages (from 6.8 to 6.5 percent): Clothing and Footwear (from 3.7 to 3.5 percent); Housing, Water, Electricity, Gas and Other Fuels (from 8.6 to 8.4 percent): Health (from 2.9 to 2.7 percent); Restaurants and Hotels (from 3.5 to 3.3 percent); Recreation and Culture (from 4.5 to 4.4 percent). Inflation remained unchanged for and Education (1.8 percent).
The 16 percent trimmed mean inflation and inflation excluding administered prices increased from 7.9 percent and 6.8 percent to 8.4 percent and 7 percent, respectively, in the same period.