Headline inflation increased from 14.3 percent in July to 14.6 percent in August 2022, the highest value since December 2008 (13.7 percent), remaining above the Bank’s medium-term objective range of 3 6 percent, and significantly higher than the 8.8 percent in August 2021. According to Statistics Botswana, the rise in inflation between July and August 2022 mainly reflects the general increase in annual price changes for some categories of goods and services, notably, Food and Non-Alcoholic Beverages (from 11.8 to 13.2 percent) because of the increase in flour and maize prices. Annual price changes for the following categories of goods and services also increased: Communication (from 0.5 to 1.6 percent); Transport (from 39.3 to 39.8 percent); Recreation and Culture (from 4.7 to 4.9 percent); Furnishing, Household Equipment and Routine Maintenance (from 5.6 to 5.7 percent); and Miscellaneous Goods and Services (from 9.7 to 9.8 percent). However, the upward pressure on inflation was partially offset by inflation falling with respect to: Housing, Water, Electricity, Gas and Other Fuels (from 6.6 to 6 percent); Alcoholic Beverages and Tobacco (from 4.2 to 4.1 percent); and Restaurants and Hotels (from 5.8 to 5.7 percent). Inflation remained unchanged for: Clothing and Footwear (4.4 percent); Health (2.8 percent); and Education (2.6 percent).

Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 11.5 percent and 7.6 percent to 11.8 percent and 8 percent, respectively, in the same period.