MASERU
Lesotho’s annual inflation rate settled at 4.4% in May 2025, marking a slight deceleration from earlier highs, but still revealing pressure points in critical consumer categories such as food, clothing, and housing. The latest Consumer Price Index (CPI) report from the Bureau of Statistics highlights not only the resilience of some inflationary drivers but also the complex story underneath the average.
“While the overall index shows stability, sectoral inflation tells a deeper story,” notes one analyst, pointing to key necessities like food and housing registering higher-than-average price increases.
CPI Overview – May 2025
| Category | Weight (%) | May 2024 Index | April 2025 Index | May 2025 Index | YoY Change (%) | MoM Change (%) |
| Food & Non-alcoholic beverages | 32.61 | 116.8 | 123.55 | 124.21 | 6.3 | 0.5 |
| Alcohol and Tobacco | 6.41 | 124.95 | 129.99 | 130.73 | 4.6 | 0.6 |
| Clothing & Footwear | 8.12 | 113.65 | 122.02 | 123.13 | 8.3 | 0.9 |
| Housing, Water, Electricity, Gas and Other Fuels | 14.9 | 109.14 | 109.73 | 112.82 | 3.4 | 2.8 |
| Furnishings, Household Equipment & Routine Maintenance | 3.32 | 115.13 | 116.99 | 117.65 | 2.2 | 0.6 |
| Health | 1.91 | 114.52 | 117.86 | 118.0 | 3.0 | 0.1 |
| Transport | 11.13 | 110.15 | 108.69 | 108.14 | -1.8 | -0.5 |
| Communications | 4.39 | 99.98 | 99.98 | 99.73 | -0.3 | -0.3 |
| Recreation and culture | 1.38 | 106.59 | 107.5 | 108.03 | 1.4 | 0.5 |
| Education | 4.86 | 117.06 | 117.55 | 117.55 | 0.4 | 0.0 |
| Restaurants and Hotels | 6.55 | 94.49 | 104.92 | 105.28 | 11.4 | 0.3 |
| Miscellaneous goods and services | 4.41 | 114.56 | 118.11 | 118.23 | 3.2 | 0.1 |
Key Movers: The Categories Driving Inflation
Food & Non-Alcoholic Beverages
The biggest contributor to inflation remains food, with a year-on-year increase of 6.3%. This category alone added 2.1 percentage points to the overall CPI. Bread, grains, and vegetables led the price surges, raising alarm for low-income households.
Clothing & Footwear
Clothing costs spiked 8.3% year-on-year. Notably, footwear prices soared by 10.4%, reflecting higher import costs and seasonal shifts.
Housing, Utilities & Fuels
With a 2.8% month-on-month increase, housing-related expenses showed the steepest short-term growth. The hike was due to imputed rent and maintenance, while electricity and gas fell.
Restaurants and Hotels
Restaurant and hotel prices rose a whopping 11.4% year-on-year. Catering services alone increased by 12.6%.
Year-on-Year CPI Change by Category (May 2025)
CPI Index Trends by Category (May 2024 – May 2025)
Bottom Line
May 2025 CPI figures paint a nuanced picture of Lesotho’s inflation dynamics—while the headline rate seems benign, underlying pressures are deeply felt at the household level. As winter sets in, attention will turn to how rising energy and clothing prices strain already tight budgets.
For households, it’s not just about inflation…it’s about where it’s happening.
