INFLATION SHOOTS TO 15.7%

BUUMBA CHIMBULU writes AS the Kwacha continues to depreciate, the annual inflation rate for April 2020 has shot up to 15.7 percent from 14.0 percent in March 2020 due to price increase in both food and non- food items. The annual inflation rate has moved from 12.5 percent recorded in January 2020, 13.9 percent in February, and 14.0 in March to 15.7 percent percent in April. Early last month, experts predicted that Zambia’s inflation was forecast to increase between 14 to 16 percent in the medium term economic outlook due to sharp depreciation of the Kwacha. The Kwacha is currently trading between K18.650 and K18.700 against the dollar. Yesterday, Zambia Statistics Agency (ZSA) Interim Statistician, Mulenga Musepa, announced in Lusaka that on average, prices of goods and services increased by 15.7 percent between April 2019 and April 2020. Mr Musepa attributed the increase in the annual rate of inflation to price increases in food and non-food items. “Food inflation increased from 15.2 percent to 17.0 percent. The increase in the annual food inflation was mainly attributed to increases in prices of food items such as Dried Bream, Dried Kapenta (Mpulunguand Siavonga), Cooking oil, Live Chicken and Sugar. “Non-food inflation increased from 12.7 percent to 14.2 percent. The increase in the annual Non-Food inflation was mainly attributed to price increases in items such as Purchase of vehicles, Solid fuels (i.e. Charcoal and Firewood Furnishings and household appliances (refrigerator),” he said. Mr Musepa also said the year-on-year food inflation rate for April 2020 was recorded at 17.0 per cent compared to 15.2 per cent recorded in March 2020, indicating an increase of 1.8 percentage points. This development, he explained, was mainly attributed to increases in prices of food items such as dried Bream, dried Kapenta (Mpulungu and Siavonga), cooking oil, live chicken and sugar. He further said the year-on-year non-food inflation rate for April 2020 was recorded at 14.2 percent compared to 12.7 percent recorded in March 2020, indicating an increase of 1.5 percentage points. “This increase was mainly attributed to price changes in items such as Purchase of vehicles, Solid fuels (i.e. Charcoal and Firewood), Furnishings and household appliances (refrigerator),” he said. The Sun