Headline inflation rose from 6.2 percent in May to 8.2 percent in June 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 June 2020. According to Statistics Botswana, the rise in inflation between May and June 2021 mainly reflects the base effects associated with the reduction in domestic fuel prices in June 2020 and the increase in water tariffs in June 2021, as reflected by the annual price changes for Transport (from 8.9 to 17.4 percent) and Housing, Water, Electricity, Gas and Other Fuels (from 6.6 to 8.6 percent) categories of goods and services, respectively. Annual price changes for the following categories of goods and services also increased: Restaurants and Hotels (from 3 to 3.5 percent); Furnishing, Household Equipment and Routine Maintenance (from 3.4 to 3.7 percent); Recreation and Culture (from 4.3 to 4.5 percent); and Food & Non-Alcoholic Beverages (from 6.7 to 6.8 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to: Alcoholic Beverages and Tobacco (from 13 to 9.3 percent); Health (from 3.2 to 2.9 percent); Clothing and Footwear (from 3.9 to 3.7 percent); and Communication (from 1.7 to 1.6 percent). Inflation remained unchanged for Miscellaneous Goods and Services (6 percent) and Education (1.8 percent).

The 16 percent trimmed mean inflation and inflation excluding administered prices increased from 5.8 percent and 6.7 percent to 7.9 percent and 6.8 percent, respectively, in the same period.