Headline inflation rose from 11.9 percent in May to 12.7 percent in June 2022, the highest value since February 2009 (11.7 percent), remaining above the Bank’s medium-term objective range of 3 - 6 percent, and significantly higher than the 8.2 percent in June 2021. According to Statistics Botswana, the rise in inflation between May and June 2022 mainly reflects the upward adjustment in public transport fares effected on May 20, 2022, as reflected by an increase in annual price change in the ‘Transport’ category (from 31.5 to 35 percent) and the notable increase in the annual price changes for the ‘Food and Non-Alcoholic Beverages’ (from 8.3 to 9.6 percent) and the ‘Miscellaneous Goods and Service’ (from 8.2 to 9.2 percent). Annual price changes for the following categories of goods and services also increased: Clothing and Footwear (from 3.8 to 4.1 percent); Health (from 2 to 2.3 percent); and Furnishing, Household Equipment and Routine Maintenance (from 5.2 to 5.3 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to: Housing, Water, Electricity, Gas and Other Fuels (from 8 to 6.3 percent); Alcoholic Beverages and Tobacco (from 4.7 to 4.6 percent); Recreation and Culture (from 4.3 to 4.2 percent); Education (from 2.6 to 2.5 percent); and Restaurants and Hotels (from 4.7 to 4.6 percent). Inflation remained unchanged for ‘Communication’ (0.4 percent).

The 16 percent trimmed mean inflation and inflation excluding administered prices increased from 9.4 percent and 6.4 percent to 10.3 percent and 6.6 percent, respectively, in the same period.