Monday, March 1, 2021

Dip in annual inflation attributed to decrease in transport sector

At 2.8 percent, the country’s annual inflation rate in March 2015 was unchanged from the previous month, February. Annual inflation in March 2015 was lower than the 4.4 percent recorded during the same month in 2014. The latest Consumer Price Index (CPI) released by Statistics Botswana attributes the downward movement of annual inflation rate between March 2014 and March 2015 was attributed to a decrease in prices of commodities in the transport sector, which dropped by 5.9 percentage points.

With regards to inflation rates for regions between February 2015 and March 2015, inflation in rural villages’ went up to 3.6 percent from 3.2 percent, cities and towns decreased to 2.5 percent from 2.6 percent while urban villages’ went down to 2.8 percent from 2.9 percent.

Information figures contained in the latest CPI for March 2015 shows that Trimmed Mean Core Inflation rate registered an increase of 0.1 of a percentage point, moving from 3.2 percent to 3.3 percent. The Core Inflation rate by exclusion remained at 4.8 percent in March, the same rate as in February.

“The non-tradable inflation rate registered a decline of 0.2 percentage point from 5.1 percent in February to 4.9 percent in March. The imported tradable inflation rate recorded a rise of 0.1 of a percentage point, from 0.9 percent in February to 1.0 percent in March,” reads the report.

Also, the report indicates that the March national CPI registered an increase of 0.4 percent, moving from 178.8 in February to 179.4 in March adding that the rural villages’ index realized an increase of 0.5 percent, moving from 185.1 to 186.0. On the other hand, the urban villages’ index went up by 0.4 percent, from 177.7 to 178.3 while the cities and towns’ index rose by 0.3 percent, moving from 177.1 to 177.5 between the two months.

A close look at the alcoholic beverages, tobacco and narcotics group index shows that it recorded an increase of 1.1 percent, from 256.7 in February to 259.4 in March and it was due to an increase in the constituent section indices of alcoholic beverages at 1.1 percent and tobacco at 0.9 percent.

“The Furnishing, Household Equipment and Routine Maintenance index group went up from 183.5 to 184.7, registering an increase of 0.7 percent between February and March. All commodities in this section recorded an increase between the two months under review,” reads the report.

On the housing, water, electricity, gas and other fuels group index recorded an increase of 0.6 percent, from 161.3 in February to 162.3 in March due to an increase in the constituent section index of rent paid by tenants at 1.4 percent which follows the quarterly survey on private rentals.

“The all-tradable inflation rate was at 1.9 percent in March, the same rate as in February and the domestic tradable inflation rate went up from 3.4 to 3.6 percent between February and March.

The all-tradable index advanced from 185.4 in February to 186.1 in March, recording a rise of 0.3 percent. Furthermore the domestic tradable index moved from 205.6 to 206.9 recording an increase of 0.6 percent between the two months. On the other side, the non-tradable index registered an increase of 0.4 percent, moving from 163.0 to 163.6, while the imported tradable index advanced from 175.0 to 175.3 registering an increase of 0.2 percent between the two months.

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