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Zambia’s inflation rate hits 10.3%

Lusaka, Zambia – Zambia’s annual inflation rate hit 10.3% in July, up from 9.8% in June, according to the Zambia Statistical Agency (ZamStats). This means that on average, prices of goods and services increased by 10.3% between July 2022 and July 2023.

The outturn was mainly attributed to price movements in cereals, fish, milk, cheese and eggs, and vegetables. Annual non-food inflation for July remained the same at 7.8%. This development was mainly attributed to increases in prices of non-food items such as clothing and footwear, pharmaceuticals products, and accommodation services.

“Of the 3.4 percentage points, housing, water, electricity, gas and other fuels contributed the highest at 1.0 percentage points followed by transport and clothing and footwear at 0.8 and 0.6 percentage points, respectively,” Musepa said.

Musepa indicated that Lusaka province contributed the highest at 3.4 percentage points to the overall annual inflation of 10.3 percent in July 2023. Copperbelt was at 1.8 percentage points, while Central and Eastern province contributed 1.1 percentage points each. He said North-western province had the lowest contribution of 0.3 percentage points.

On trade, Musepa indicated that cumulative total trade for the period January to June 2023 was K200.4 billion, while that of 2022 for the same period was K178.4 billion, representing a 12.3 percent increase.

“The total volume of exports via all modes for the period January to June 2023 was K101.9 billion. Road transport accounted for highest K50.8 billion representing 49.8 percent share. Rail transport was second at K4.1 billion and air transport was third accounting for K2.4 billion, while other modes accounted for K44.6 billion,” he said.

The total value of Imports via all modes of transport for the period January to June 2023 was K98.5 billion. Road transport was the highest at K56.9 billion representing 57.8 percent share, followed by Air transport at K4.8 billion (4.9 percent). Rail transport was third at K1.9 billion accounting for 2.0 percent of the total import bill. Other modes of transport accounted for K34.9 billion (35.4 percent).

Zambia recorded a trade surplus of K0.9 billion in June 2023 compared to a surplus of K0.5 billion in May 2023. Exports mainly comprising domestically produced goods, decreased by 2.8% to K16.6 billion in June 2023 from K17.1 billion in May 2023. This was mainly on account of a 2.6, 12.9, 2.6 and 0.5 percent decreases in export earnings from intermediate goods, capital goods, raw materials and consumer goods respectively.

He said imports decreased by 7.8% to K15.7 billion in June 2023, from K17.1 billion in May 2023, and that this was mainly as a result of 27.6, 20.3 and 2.5 percent decreases in import bills of capital goods, raw materials and intermediate goods respectively.

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