"This study is motivated by the high and unpredictable episodes of inflation in Botswana over the last 20 years. This is despite the Bank of Botswana's concerted effort to keep inflation at its minimum and stable over time. More specifically, the Bank has been attempting to bring down and keep inflation within the medium-term objective range of 3 to 6 percent. The objectives of this study are therefore to (a) examine inflation dynamics in Botswana by identifying the factors that have determined its movements overtime, and (b) assess the likelihood that the Bank of Botswana’s medium-term objective range of 3 to 6 percentage."