Headline inflation increased from 1 percent in August to 1.8 percent in September 2020, but remained below the lower bound of the Bank’s medium-term objective range of 3 – 6 percent, and significantly lower than the 3 percent in September 2019. According to statistics Botswana, the significant increase in inflation between August and September 2020 mainly reflects the upward adjustment in public transport fares {Transport (from -6.9 to -3.9 percent)} in September 2020, which is estimated to have increased inflation by approximately 0.64 percentage points. The increase in inflation between August and September 2020 also reflects the increase in the annual price changes for some categories of goods and services: Housing, Water, Electricity, Gas and Other Fuels (from 6.1 to 6.4 percent); Clothing and Footwear (from 2.3 to 2.5 percent); Miscellaneous Goods and Services (from 0.5 to 0.7 percent); Communication (from 0.5 to 0.6 percent); and Recreation and Culture (from -0.4 to 0 percent). However, the upward pressure on inflation was partly offset by inflation decreasing with respect to Alcoholic Beverages and Tobacco (from 6.6 to 6.2 percent) and Furnishing, Household Equipment and Routine Maintenance (from 2.2 to 2 percent). Inflation remained stable for: Education (4.7 percent); Food & Non-Alcoholic Beverages (4.2 percent); Restaurants and Hotels (3 percent); and Health (1.5 percent).

Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 1.1 percent and 2.9 percent to 1.8 percent and 3.1 percent, respectively, in the same period.