Botswana March inflation up

GABORONE – Botswana’s annual inflation rate quickened to a new 12-year peak of 17,7 per cent in March, official data showed yesterday, putting the country’s formal three to six per cent inflation target further out of reach.

In February inflation rose to 17 per cent year-on-year from 16,6 per cent in January, prompting the central bank to raise interest rates for the second time in five months – a move seen as likely to restrain economic growth. The figures from the Central Statistical Office show that on a monthly basis, the index rose by about 0,8 per cent, with prices rising faster in urban than in rural areas.Higher fuel prices were a major factor behind the increases.Botswana introduced a formal inflation target of three to six per cent for the coming three years in February, but indicated that the target would not be achieved this year due to the impact of the devaluation of the pula in May 2005.-Nampa-ReutersThe figures from the Central Statistical Office show that on a monthly basis, the index rose by about 0,8 per cent, with prices rising faster in urban than in rural areas.Higher fuel prices were a major factor behind the increases.Botswana introduced a formal inflation target of three to six per cent for the coming three years in February, but indicated that the target would not be achieved this year due to the impact of the devaluation of the pula in May 2005.-Nampa-Reuters