Fuel price hike could reverse inflation downward trend

source: The Botswana Gazette
Written by JFG
Wednesday, 17 June 2009 07:33

Analysts have warned that the latest fuel price hike could reverse the downward trend of inflation. Last week the Ministry of Minerals, Energy and Water Resources announced an increase in the price of fuel, a move which Motswedi Securities analyst says could have an effect on inflation.
The retail price for petrol went up by 56 thebe per litre, diesel by 55 thebe per litre while paraffin was increased by 18 thebe per litre. The rise in pump prices follows the increase in crude oil prices which are currently trading at just over US$70 per barrel.

Garry Juma said the increase in fuel pump prices is expected to reverse the downward inflation trend. He explained that inflation may continue to fall in the short term but if fuel prices continue on an upward trend there may be more inflationary pressure which could push inflation even higher. “We expect to see a fall in inflation which [continue reading]

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