Botswana’s annual inflation rate declined sharply to 7.8 percent in September from 9.3 percent in August, offering some relief to consumers and businesses grappling with elevated operating costs.
Statistics Botswana’s Consumer Price Index report for September 2026 shows that inflation fell by 1.5 percentage points, although transport remained the biggest contributor to price increases across the economy.
The transport group contributed 4.0 percentage points to annual inflation, down from 5.1 percentage points in August. Miscellaneous goods and services followed with 1.1 percentage points, while housing, water, electricity, gas and other fuels, alongside food and non-alcoholic beverages, each contributed 0.7 percentage points.
Despite the moderation in annual inflation, the overall cost of living continued to edge upwards. The national Consumer Price Index rose marginally by 0.1 percent, from 149.5 in August to 149.6 in September, indicating that prices remained broadly elevated.
Food prices provided some relief during the month, with the food and non-alcoholic beverages index declining by 0.6 percent. The decrease was largely driven by lower vegetable prices, which fell by 3.0 percent, followed by sugar and confectionery, down 1.0 percent, meat, down 0.9 percent, and bread and cereals, which declined by 0.7 percent.
However, housing-related expenses continued to rise. The housing, water, electricity, gas and other fuels index increased by 0.6 percent, supported by higher rental costs and dwelling maintenance expenses.
Core inflation also moderated, with the trimmed mean measure declining from 8.3 percent in August to 7.4 percent in September. Core inflation excluding administered prices fell to 5.3 percent from 5.9 percent.
The latest figures suggest easing inflationary pressure, although sustained price increases in essential services and transport-related expenses remain a concern for households and businesses.