Inflation falls to 5.8 percent in June

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mohohloThe Botswana’s CPI measured year-on-year inflation was last month within the Bank of Botswana’s objective range for the first time in many months bringing hope that the Central Bank will contain the numbers for the remainder of the year.

The Central Statistics Botswana said in a monthly consumer price index update that major components in the basket softened pushing the figures down.

The government’s statistics body said in June 2013, national annual inflation rate was 5.8 percent, a decrease of 0.3 of a percentage point from 6.1 percent recorded in May 2013 with the annual rate of 5.8 percent realised in June 2013 was lower than the 7.3 percent recorded during the same month in 2012.

“The decrease on the overall annual rate came from stable prices of commodities especially major components such as Transport, Food and Non-Alcoholic Beverages, which decreased by 2.5 and 2.8 percentage points respectively. Comparison of inflation rate among regions from May to June, showed that cities and towns’ went down to 5.5 from 5.9 percent, rural villages’ dropped to 6.6 from 6.9 percent while urban villages’ registered 5.8 from 5.9 percent,” it said.

The June 2013 national Consumer Price Index was at 169.1, an increase of 0.2 percent on the May 2013 index of 168.7. The rural villages’ index advanced from 172.5 to 173.3, recording an increase of 0.5 percent. The Urban villages’ index realized a rise of 0.4 percent, from 167.5 to 168.1 between the two months, while the cities and towns’ index moved from 168.0 to 168.1 between May and June, registering an increase of 0.1 percent.

Group indices were stable between May and June, recording changes of less than 1.0 percent. The Housing, Water, Electricity, Gas & Other Fuels group index recorded an increase of 0.8 percent, from 152.2 in April to 153.4 in May. This was mainly due to an increase in the constituent section index of Water Supply & Miscellaneous Services, which went up by 5.8 percent. The increase in Water Supply & Miscellaneous Services section index was attributable to the revised water tariffs, which were effected on the 1st of June 2013.

The Clothing & Footwear group index recorded an increase of 0.5 percent from 151.5 in May to 152.3 in June. This is because all section indices recorded an increase as follows Cleaning, Repair & Hire (0.8 percent), Clothing (0.6 percent), Footwear (0.5 percent) and Other articles of Clothing (0.3 percent).

The Furnishing, Household Equipment & Routine Maintenance group index registered an increase of 0.6 percent from 166.3 in May to 167.4 in June. All section indices recorded increases, notably, Goods & Services for Household Maintenance (0.8 percent), Household Appliances (0.7 percent), Furniture & Furnishing (0.6 percent) and Small Tools, Miscellaneous Accessories (0.5 percent).

All-Tradable inflation rate registered a decrease of 0.3 of a percentage point from 6.8 percent in May to 6.5 percent in June. The Domestic Tradable inflation went down by 0.6 of a percentage point in June, registering 6.9 percent against 7.5 percent in May, whilethe Non-Tradable inflation rate went down by 0.1 of a percentage point, from 4.3 percent in May to 4.2 percent in June.

The Imported Tradable inflation rate recorded a drop of 0.1 of a percentage point, from 6.3 percent in May to 6.2 percent in June. The All-Tradable index moved from 176.5 in May to 176.8 in June, recording an increaseof 0.2 percent. The Non-Tradable index went up by 0.5 percent, from 150.4 in May to 151.1 in June whereas the Imported Tradable index moved from 168.9 to 169.5, an increase of 0.4 percent.

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