According to Statistics Botswana, headline inflation decreased from 3.9 percent in November to 3.5 percent in December 2023, remaining within the Bank’s medium-term objective range of 3 – 6 percent, and was significantly lower than the 12.4 percent in December 2022. Inflation averaged 5.2 percent in 2023, significantly lower than the 12.1 percent in 2022. The decrease in inflation between November and December 2023 was mainly due to the decrease in vehicle prices as a result of end of year sales and a broad-based decrease in food prices. Meanwhile, there were partially offsetting movements in the annual price changes for some categories of goods and services, while for the rest, prices were unchanged. Inflation for domestic tradeables decreased from 5.6 percent to 4.8 percent between November and December 2023, due to a broad-based decrease in food prices. Similarly, imported tradeables inflation decreased from 3.9 percent to 3.5 percent, in the same period, mainly on account of the decline in vehicle prices due to end of year dealership discounts. As a result, all tradeables inflation decreased from 4.4 percent in November to 3.9 percent in December 2023. Meanwhile, inflation for non-tradeables marginally declined from 3.1 percent to 3 percent in the same period. Similarly, the 16 percent trimmed mean inflation decreased from 3.7 percent to 3.3 percent, while inflation excluding administered prices declined from 4.9 percent to 4.4 percent, in the same period.