Botswana’s annual inflation rate eased significantly to 2.3% in April 2025, down from a seven-month high of 2.8% recorded in March.

The latest figures, released by Statistics Botswana, mark a break in the country’s recent inflationary momentum, which had seen prices gradually climb over the past three months.

April’s inflation rate is the lowest recorded since December 2024 and offers a welcome reprieve for consumers and policymakers alike.

The decline was primarily driven by a notable drop in transport prices, which fell by 1.6% year-on-year in April, reversing a 0.4% increase in March. This sharp downturn is largely attributed to a steeper decrease in the cost of operating personal transport vehicles, which plunged by 6.1%, compared to a milder 1.1% drop in the previous month.

Other categories also contributed to the easing inflation. Price increases for alcoholic beverages and tobacco moderated slightly to 7.4% from 7.6%, while the cost of clothing and footwear rose by 4.1%, down from 4.2% in March. These slowdowns suggest some stabilisation in core consumer goods and services, Trading View reports.

However, not all categories followed the same trend. Inflation for food and non-alcoholic beverages inched up marginally to 5.9% from 5.8%, underscoring continued pressure on household staples. Meanwhile, inflation for housing, water, electricity, gas, and other fuels remained flat at 0.9%, indicating stability in the country’s essential utilities sector.

Furthermore, on a monthly basis, consumer prices rose by 0.8% in April, representing the sharpest month-on-month increase in over a year. This acceleration compares to a modest 0.2% rise in March and could be influenced by seasonal factors or shifts in short-term demand.

The Bank of Botswana has maintained a cautious stance on monetary policy amid global economic uncertainties and local fiscal reforms. With inflation now well within the central bank’s medium-term target range of 3–6%, this latest dip may provide room for more accommodative policy measures should economic growth require further support.