- up to 4.1% in January
Botswana’s annual inflation rate climbed to 4.1 percent in January 2026, up from 3.9 percent in December, as rising transport and food costs placed renewed pressure on household budgets, according to the latest Consumer Price Index (CPI) report released by Statistics Botswana.
The 0.2 percentage point increase marks a continuation of the upward movement observed at the end of 2025, signaling that price pressures are beginning to firm at the start of the new year.
Transport remained the largest contributor to overall inflation, adding 1.6 percentage points to the annual rate. Elevated costs linked to the purchase and operation of vehicles continue to weigh heavily on consumers. Food and Non-Alcoholic Beverages followed, contributing 0.9 percentage points, alongside Miscellaneous Goods and Services, which also added 0.9 percentage points. In contrast, the Housing, Water, Electricity, Gas and Other Fuels group exerted a moderating influence, contributing negative 0.4 percentage points and helping to contain overall inflation.
On a month-on-month basis, prices increased by 0.6 percent, with the national CPI rising from 139.6 in December to 140.5 in January. Education recorded one of the sharpest monthly increases, rising by 2.0 percent following adjustments in school tuition fees at both primary and tertiary levels. Food and Non-Alcoholic Beverages rose by 1.5 percent over the same period, reflecting broad-based price increases across most food categories.
Within the food basket, fish prices increased by 2.9 percent, coffee, tea and cocoa rose by 2.2 percent, while fresh meat climbed by 2.1 percent. Bread and cereals also recorded notable gains. On an annual basis, food inflation stands at 6.1 percent, well above the national average, underscoring sustained pressure on essential household items. Although vegetable prices have declined over the past year, the overall food trend remains upward.
Regional data shows variation in inflation rates across settlement types. Urban villages recorded the highest annual rate at 4.3 percent, followed by rural villages at 4.2 percent, while cities and towns registered 3.7 percent. All regions experienced a 0.6 percent month-on-month increase in January, indicating widespread price adjustments across the country.
Tradeable goods, which include both imported and domestically traded items, continued to drive inflation. All-Tradeables inflation stood at 6.4 percent, rising from 6.1 percent in December. Imported Tradeables reached 6.3 percent, while Domestic Tradeables stood at 6.4 percent. In contrast, Non-Tradeables inflation remained subdued at 0.6 percent, suggesting that external price pressures and costs linked to globally traded goods remain the dominant inflationary force.
Although inflation remains significantly lower than the double-digit levels recorded in 2023, the January data suggests renewed momentum in price growth. With transport, food and education costs rising simultaneously, households may continue to feel strain in the coming months, even as housing and utilities help moderate the broader inflation picture.
