Consumer Price Index (CPI) in December 2024

Good morning 🌞😃☀️

Let’s get into today’s article regarding CPI, and find out what drove inflation last December:

Key Drivers of Core Inflation in December 2024

In December 2024, core inflation in Botswana was influenced by various goods and services. Here’s a breakdown of the main contributors:

1. Food & Non-Alcoholic Beverages

• This category contributed 0.7 percentage points to the overall inflation rate.

• Specific increases included:

• Meat: Prices rose by 1.3% compared to November, contributing to higher household expenses.

• Sugar, Jam, and Confectionery: Increased by 0.9%.

• Fruits: Prices surged by 3.8%, partly due to seasonal factors.

2. Miscellaneous Goods & Services

• This group also contributed 0.7 percentage points.

• Items such as personal care products saw modest increases, with prices rising by 0.1% month-on-month.

3. Alcoholic Beverages & Tobacco

• Contributed 0.3 percentage points to inflation.

• The price of alcoholic beverages increased by 0.9%, driving this category’s growth.

4. Housing, Water, Electricity, and Other Fuels

• This group contributed 0.2 percentage points, driven by a 0.8% increase in rental prices.

5. Restaurants & Hotels

• A notable contributor, with a 0.6% rise in prices for services like restaurants and cafes.

6. Transport

• This category exerted a negative contribution (-0.7 percentage points) to inflation, driven by declining fuel prices:

• Diesel prices dropped by P0.10 per liter.

• Petrol (95) prices fell by P0.27 per liter.

These changes reflect how both core and non-core factors, such as food, housing, and transport, interact to shape the inflationary environment in Botswana.

Source: Statistics Botswana’s website.