Annual inflation in Botswana continued to rise during July, hitting a 0.7% increase to reach 8.9% at the end of the month.

Over the past few months, inflation has stayed on its upward trajectory, predominantly down to the recent tax hikes back in April, say analysts.

According to data from Statistics Botswana (SB), the principal contributors to July’s annual inflation rates are transport with 4.6%; water, electricity, gas, and other fuels with 1.5%; food and non-alcoholic beverages at 0.9%; and miscellaneous goods and services at 0.6%.

However, the most recent figures don’t include alcoholic beverages, sales of which were suspended in June.

Statistics Botswana added that in regard to the inflation rates for regions between June and July, the rural villages’ rate rose 0.9% from 7.9% to 8.8%. Whereas the inflation rate in urban villages stood at 9.0% last month, a 0.7% rise on June’s reading of 8.3%.

Meanwhile, the inflation rate in cities and towns increased by 0.6%, from 8.2% to 8.8%.

Furthermore, the national Consumer Price Index (CPI) rose 0.9% in July, hitting 111.7, compared to June’s 110.8 figure.

The rural villages’ index showed 1.1% growth from 109.6 in June to 110.8 last month.

In addition, there was a 0.7% increase to the cities and towns index, from 111.0 to 111.7, whilst the urban villages index edged up 0.7% from 111.3 in June to July’s reading of 112.1.

Group indices have remained stable over June and July, with changes of under 1%, with the exception of the transport group index which registered a rise of 3%.

The increase in the transport group index is credited to a rise in the constituent section index of personal transport operation at 4.8% and vehicle purchases at 2.2%.