In July 2025, annual inflation in Botswana decreased to 1.1%, marking the lowest rate since August 2020, down from 2% in June. The deceleration in price growth was notably observed in various categories, including food and non-alcoholic beverages, which saw a slowdown to 4.3% from 5.4%, miscellaneous goods and services at 7.5% compared to 7.8%, alcoholic beverages and tobacco at 6.4% from 6.6%, recreation and culture at 2.3% from 2.6%, and restaurants and hotels at 2.8% from 3%. Additionally, significant declines were recorded in housing and utilities, moving from -0.1% to -4.2%, and in transportation, which shifted from -1.7% to -1.9%. On a month-to-month basis, the consumer price index (CPI) decreased by 0.7% in July, representing the sharpest drop in ten months, following a 0.2% increase in the preceding month.