- Transport index increased by 3.1% between May and June
- Transport was the main driver of inflation in June
Annual inflation rose to 12.7 percent in June 2022 compared to 11.9 percent in the prior month’s 0.8 percent increase, says Statistics Botswana.
According to the government data bureau, the increase in major components in the Consumer Price Index (CPI), which measures price changes in goods and services with reference to a base period, caused the upward rise in inflation.
The price increase was seen specifically in Transport (8.1 percent), Food & Non-Alcoholic Beverages (1.4 percent), Housing, Water, Electricity, Gas & Other Fuels (1.1 percent) and Miscellaneous Goods & Services (0.9 percent). “Three group indices recorded changes of at least 1.0 percent between May and June 2022, namely Transport (3.1 percent), Food & Non-Alcoholic Beverages (1.8 percent) and Miscellaneous Goods & Services (1.1 percent),” says the Statistics Botswana report.
The Transport index, being the main driver of the annual rate of inflation in June, registered an increase of 3.1 percent, from 144.2 in May to 148.7 in June. Statistics Botswana says the increase was mainly attributable to a rise in the constituent section indices of Transport Services (14.8 percent) and Purchase of Vehicles (1.0 percent). “The rise in the Transport Services section index was mainly due to an increase in Minibus and Taxi Fares from P6.00 to P7.00 and P7.00 to P8.00 respectively, whereas long distance bus fares (bitumen road) increased from P0.30 to P0.35 per kilometer,” says the report. “These changes were effected on the 20th May 2022.”
The Food & Non-Alcoholic Beverages group index rose by 1.8 percent, from 121.6 in May 2022 to 123.8 in June 2022. This was due to a general increase in the constituent section indices, specifically Oils & Fats (5.4 percent), Bread & Cereal (2.2 percent), Vegetables (1.8 percent), Milk, Cheese & Milk Products (1.8 percent), Food Not Elsewhere Classified (1.2 percent), Sugar, Jam, Honey, Chocolate & Confectionery (0.9 percent), Meat (Fresh, Chilled & Frozen) (0.9 percent) and Mineral Waters, Soft Drinks, Fruits & Vegetables Juices (0.8 percent).
The Miscellaneous Goods & Services group index registered a growth of 1.1 percent, from 121.7 in May to 123.0 in June. The rise was due to the increase in the constituent section indices of Taxes, Licenses & Fees (2.6 percent), Personal Effects Not Elsewhere Classified (2.0 percent), Financial Services (1.3 percent) and Personal Care (0.9 percent).