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Zambia’s annual inflation rate closed 2024 at 16.7 percent, up from 16.5 percent recorded in November, signaling sustained pressure on household budgets as food prices continued to rise.
“The annual inflation rate for December 2024 indicates that, on average, prices of goods and services increased by 16.7 percent between December 2023 and December 2024,” Zambia Statistics Agency (ZamStats) Acting Statistician General Sheila Mudenda announced.
Read more: Zambia’s inflation rate hits 16.5%, as trade deficit doubles to K3.1 billion
The rise in inflation was attributed to price movements in both food and non-food items.
Addressing journalists at the ZamStats offices in Lusaka on Thursday, Mudenda stated that food inflation climbed to 18.6 percent in December from 18.2 percent the previous month, driven by higher costs for staples such as mealie meal, maize grain, rice, cooking oil, and various meat products.
“The food and non-alcoholic beverages group contributed 10.8 percentage points to the overall 16.7 percent annual inflation, highlighting its significant impact,” she explained.
Non-food inflation also rose slightly to 14.2 percent from 14.1 percent, with key contributors including the cost of vehicles, air transport, fuel, and hotel services.
Inflationary pressures varied across provinces.
Copperbelt and Lusaka provinces led with the highest contributions to overall inflation at 4.0 percentage points each, followed by Central Province at 2.3 percentage points.
“While some provinces, such as Copperbelt and Luapula, saw inflation increases in December, others like Southern and Western provinces recorded slight decreases,” Mudenda noted.
Zambia’s trade figures for 2024 showed robust growth, with cumulative total trade from January to November reaching K530.3 billion, a 41.5 percent increase compared to K374.8 billion in 2023.
Exports for the period totaled K266.9 billion, with road transport accounting for 92.4 percent of export value.
Imports were valued at K263.4 billion, with road transport dominating at 56.2 percent of the total.
“Trade data reflects a significant increase in economic activity, driven largely by the movement of goods via road transport, which continues to play a pivotal role in Zambia’s logistics sector,” Mudenda said.
As Zambia enters 2025, inflationary trends and trade performance are expected to remain critical focal points for policymakers working to stabilize the economy and address rising living costs.
On trade surplus, Mudenda stated that Zambia recorded a trade surplus of K1.1 billion in November 2024, marking a significant turnaround from the K3.1 billion deficit recorded in October 2024, according to recent trade statistics.
“This positive trade balance was driven by a notable increase in export earnings and a relatively moderate rise in imports,” she said.
Exports, primarily comprising domestically produced goods, rose by 23.2 percent to K31.5 billion in November from K25.6 billion in October.
The increase was largely attributed to a 26.0 percent rise in earnings from intermediate goods and a 23.1 percent boost from raw materials.
“Intermediate goods and raw materials significantly drove export performance in November, reflecting increased activity in key production sectors,” Mudenda said.
On the import side, November saw a 6.0 percent increase to K30.4 billion from K28.7 billion in October.
This was mainly due to a 9.5 percent rise in intermediate goods, an 11.0 percent growth in capital goods, and an uptick in raw material imports.
“The increase in imports, particularly in capital and intermediate goods, suggests heightened investment in productive capacity, which may support long-term economic growth,” Mudenda noted.
The return to a trade surplus may have highlighted improved export performance and a steadying trade environment, offering a positive outlook for Zambia’s external sector as the year ends.
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