Botswana's inflation continues to drop

Botswana's national annual inflation kept the downward trend in November, dropping to 4.1 percent from 4.8 percent in October, Statistics Botswana (SB) has reported. The country's data authority on Friday said the inflation stood at as high as 7.4 percent during the same month in 2012. SB attributed the downward movement of annual inflation rate 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. SB said all-tradable inflation rate registered a decrease of 0. 9 percentage point from 5.0 percent in October to 4.1 percent in November. Meanwhile Botswana's central bank's Monetary Policy Committee (MPC) has concluded that the medium-term outlook for inflation is positive, with inflation forecast to remain within the 3 percent to 6 percent objective range. "Weak domestic demand and the forecast benign external price developments contribute to the positive inflation outlook in the medium term, with the likelihood of a further fall in inflation in the short term. However, this outlook could be negatively affected by any unanticipated large increase in administered prices and government levies, as well as international food and oil prices increasing to levels beyond the current forecast," said the Bank of Botswana said in a recent statement. Botswana's inflation eased from 5 percent in September 2013 to 4.8 percent in October, and was within the bank's objective range.