Botswana’s inflation rate has continued to drop amid fears by the central bank that unanticipated increase in administered prices, government levies, and international food and oil prices could fuel inflation.
Statistics Botswana said Friday the annual inflation rate for November dropped to 4.1 percent, from 4.8 percent in October.
“Annual inflation in November 2013 was lower than the 7.4 percent recorded during the same month in 2012,” Statistics Botswana in a statement.
“The downward movement of annual inflation rate between November 2012 and November 2013 was attributed to the stable prices of commodities, especially the main components of transport, alcoholic beverages, tobacco and narcotics and food and non-alcoholic beverages, which dropped by 7.9, 5.4 and 3.2 percentage points respectively,” the office said.
Statistics Botswana further said group indices were stable between October and November, recording changes of less than 1.0 percent.
Meanwhile, the Botswana Institute for Development Policy Analysis (BIDPA), the country’s leading research organisation, has said inflation remains unstable despite recent drop to the central bank’s medium term target of 3-6 percent.
Dr. Monnane Monnane, a research fellow at BIDPA, said Botswana’s inflation fall is neither hinged on any government policy or sustainable.
Botswana’s national year-on-year inflation rate started falling within the central bank’s target in June, dropping to 5.8 percent from 6.1 percent in May.