Food prices push Botswana inflation higher

Tue 19 Feb 2008, 15:10 GMT

JOHANNESBURG, Feb 19 (Reuters) - Botswana's inflation rate rose to 8.4 percent year-on-year in January from 8.1 percent in December due largely to higher food prices, the central bank said on Tuesday.

Botswana imports food from neighbouring South Africa, where food inflation ticked up to 13.5 percent year-on-year in December and is seen trending higher.

"Food makes up 21.8 percent of the CPI basket," the Bank of Botswana said in a statement on its website.

Botswana's central bank left its key lending rate steady at 14.5 percent in December despite expectations inflation would remain above its 4-7 percent target range.

It said core inflation in January was sharply higher at 8.5 percent from 7.4 percent in December, although the pace of price increases slowed for transportation, education, restaurants, hotel, clothing and footwear, communication and recreation.