Inflation was lower across a range of commodity groups, including food and non-alcoholic beverages. Like South Africa, Botswana has set its medium-term inflation target range at three to six percent.
The decline was expected due to lower fuel prices, Investec Botswana analyst Tshepang Loeto said in a statement.
Ahead of the release of the February inflation figures, Bank of Botswana governor Linah Mohohlo said inflation was forecast to remain within the three to six percent range.
“As always, the formulation and implementation of monetary policy will focus on entrenching expectations of low and sustainable inflation in the medium-term, through timely responses to price changes, while ensuring that credit and other market developments are consistent with lasting financial stability,” she said during the launch of the monetary policy statement recently.
Inflation was expected to pick up in the coming months.
“We believe that a further drop in inflation is now limited, but will remain dependent on the local demand. Threats to the upside are around the increasing food prices (as evidenced in South Africa) and administered prices,” Loeto said.