In this BIDPA Briefing the Botswana inflation rate is analyzed. It has persistently remained below South African core inflation since the latter part of 2000. This trend could partly be explained by the reduction in domestic inflationary pressures as well as the appreciation of the Pula against the rand. Some of the other topics discussed are :Exchange rate risks, Stock market performance, Indicators of GDP growth: Government Spending and Formal Sector Employment.