Monthly inflation shoots to 16.6%

BUUMBA CHIMBULU writes THE instability of the Kwacha coupled with other Covid-19 related disruptions have continued to drive Zambia’s inflation rate on its upward route as it shoots up to 16.6 percent this month from 15.7 percent recorded in April. In January this year, inflation stood at 12.5 percent but moved further up in February […]

Monthly inflation shoots to 16.6%
BUUMBA CHIMBULU writes THE instability of the Kwacha coupled with other Covid-19 related disruptions have continued to drive Zambia’s inflation rate on its upward route as it shoots up to 16.6 percent this month from 15.7 percent recorded in April. In January this year, inflation stood at 12.5 percent but moved further up in February to 13.9 per cent and 14.0 percent in March before getting to 15.7 percent in April. The country has however recorded a trade surplus of K2, 231.6 million in April from K359.4 million recorded in March this year, representing a 521.0 percent increase. Zambia Statistics Agency (ZSA) Interim Statistician, MulengaMusepa, indicated that price increase in both food and non-food items had continued to push it on an upward trajectory. “Food inflation increased to 17.5 percent from 17.0 percent. The increase in the annual food inflation was mainly attributed to increases in prices of food items such as fish, meats and oils and fats,” Mr Musepa said yesterday in Lusaka during a monthly bulletin update. Mr Musepa explained that non-food inflation increased 15.5 percent from 14.2 percent.  He attributed the increase in the annual non-food inflation mainly to price increases in items such as charcoal, household textiles, soaps, and pharmaceutical products. He said food and non-alcoholic beverages accounted for 9.3 percentage points, while non-food items accounted for 7.3 percentage points. Mr Musepa also said monthly overall inflation for May 2020 decreased to 1.6 percent from 2.2 percent the previous month.  This, he explained, was mainly due to a slowdown in monthly food inflation.  Monthly food inflation in May decreased to 1.5 percent from 2.6 percent in April 2020.  “Average price decreases of breakfast mealie meal, roller mealie meal, maize Grain and Samp. Monthly non-food inflation remained unchanged at 1.7 percent. (April: 17 percent),” Mr Musepa said. Meanwhile, Mr Musepa said Zambia’s exports increased by 4.7 percent to K8, 929.5 million in April 2020 from K8, 530.2 million in March 2020. “Exports mainly increased due to a 7.6 percent increase in Intermediate goods exports earnings to K7, 718.7 million from K7, 175.7million in March 2020,” he said. Mr Musepa however indicated the country’s imports decreased by 18.0 percent to K6,697.9 million in Apr. 2020 from K8,170.8 million in March 2020. The Sun