Inflation falls slightly in June
source: Sunday Standard
by Sunday Standard Reporter
In line with expectation, the national year on year inflation fell on the back of washing-off of the impact of Value Added Tax (VAT) and higher electricity tariffs effected earlier in the year.
The Central Statistics Office (CSO) said on its monthly Consumer Price Index (CPI) update that in June 2010, national year-on-year inflation rate stood at 7.7 percent, down by 0.1 of a percentage point from 7.8 percent in May 2010.
Garry Guma, an analyst with Motswedi Securities, said inflation will stabilise between 6 and 8 percent in the long term.
“Looking ahead, although inflation is expected to end the year above the Bank of Botswana medium term objective range of 3-6 percent, it is expected to stabilise at levels between 6 percent and 8 percent due to weaker household disposable incomes and slower growth of [continue reading]