The annual inflation rate in October was 2.7%, shedding off 0.1% from the previous month, this is according to the recent Consumer Price Index (CPI) released by Statistics Botswana.
The data collecting agency has also changed the base year, in the process introducing new items in the basket as well as adjusting weights across group indices.
Group indices were generally stable between September and October 2016, recording changes of less than 1 percent. According to the latest data from Statistics Botswana, inflation remained flat for several commodity groups, including: housing, health, transport, communication and education, with each group registering no change in overall prices. There was a slight increase of 0.2% across the clothing and footwear, furniture, restaurant and hotels, recreation and culture group indices.
The biggest price increases were recorded in the Alcohol and Tobacco group index after recording a 0.7% increase following notable price increases in alcoholic beverages. An increase of 0.4% spread across the Food and Non-Alcoholic Beverages, and Miscellaneous Goods and Services groups. The Food and Non-Alcoholic Beverages group is the second main constituent of the CPI at 16.51% and in the last 12 months the group’s overall price increased by 3.29%.
The All-Tradable inflation rate was 1.9% in October, not showing any change from previous month. The Domestic Tradable inflation declined from 3.5% to 3.1% between September and October. The Imported Tradable inflation rate remained unchanged at 0.9 percent between the two periods. The Non-Tradable inflation rate remained unchanged at 4.9 percent between September and October 2016.
The core inflation, which excludes items that are prone to volatile price movements such as food, petrol and electricity, decreased by 0.2% to end at 3.4% in October. Core inflation is thought to be an indicator of underlying long-term inflation. This is the first set of CPI figures after the statistics agency rebased the year from September 2006 to September 2016. The CPI rebasing covers a number of issues which includes the new basket and weights, area coverage as well as the methodology. The current index has September 2016 as its base and the weights were derived from the 2009/10 Botswana Core Welfare Indicator Survey (BCWIS) results.
“CPI rebasing is a process of relating item prices in the CPI basket to the current consumption pattern i.e. to derive CPI weights which represent the new consumption patterns. The accuracy of weights to represent current expenditure patterns decreases as the length of time increases from the weight reference period,” said Ms. Majelantle, the Statistician General, before adding that there is a general shift in relative prices due to changes in supply and demand of goods and services in the economy and hence changes in the household consumption patterns.
The new basket has a total of 393 items which are categorized into 51 sections and 12 groups while the previous basket had 384 items but still classified as stated. The number of basket items has been increased and modified to cater for the changes in the consumption patterns as per 2009/10 BCWIS results. Each item in the basket is representative of all other similar items, hence the weights reflect the relative importance of an item to other items in the entire basket. It is therefore based on the fact that the behavior of the price of an item will be similar to that of the items it represents.
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.
The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.
In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.
Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.
China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.
Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.
On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.
According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.
The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.