Headline inflation increased from 12.7 percent in June to 14.3 percent in July 2022, the highest value since December 2008 (13.7 percent), remaining above the Bank’s medium-term objective range of 3 6 percent, and significantly higher than the 8.9 percent in July 2021. According to Statistics Botswana, the rise in inflation between June and July 2022 mainly reflects broad-based increase in the annual price changes for most categories of goods and services and, in particular, the upward adjustment in domestic fuel prices effected on June 28, 2022, and Air Botswana passenger fares effected on July 8, 2022, as reflected in an increase in annual price change in the ‘Transport’ category (from 35 to 39.3 percent). Inflation also increased for the following categories of goods and services: Food and Non-Alcoholic Beverages (from 9.6 to 11.8 percent);  Restaurants and Hotels (from 4.6 to 5.8 percent); Health (from 2.3 to 2.8 percent); Recreation and Culture (from 4.2 to 4.7 percent); Miscellaneous Goods and Services (from 9.2 to 9.7 percent); Clothing and Footwear (from 4.1 to 4.4 percent); Housing, Water, Electricity, Gas and Other Fuels (from 6.3 to 6.6 percent); Furnishing, Household Equipment and Routine Maintenance (from 5.3 to 5.6 percent); Communication (from 0.4 to 0.5 percent); and Education (from 2.5 to 2.6 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to ‘Alcoholic Beverages and Tobacco’ (from 4.6 to 4.2 percent).

Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 10.3 percent and 6.6 percent to 11.5 percent and 7.6 percent, respectively, in the same period.