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Zambia’s annual inflation rate has declined to 9.4 percent in January this year due to movement in prices of food and non-food items, as it records a trade deficit of K0.5 billion.
The annual inflation for January 2023, declined to 9.4 percent from 9.9 percent recorded in December 2022, Zambia Statistical Agency (ZamStats) interim statistician General Mulenga Musepa said.
Read more: Inflation rises to 9.9% on the back of high costs of fuel, lubricants
This means that on average, prices of goods and services increased by 9.4 per cent between January 2022 and January 2023.
Addressing journalists in Lusaka yesterday, Musepa indicated that annual food inflation reduced to 11.6 percent from 11.9 percent in December 2022.
He said price movements were recorded in food items such as meat products, milk products, fruits and vegetables.
Musepa said annual non- food inflation for January declined to 6.4 percent from 7.3 percent in December 2022
This outturn was mainly attributed to decreases in prices of non-food items such as Fuels & lubricants.
He indicated that of the overall 9.9 percent annual inflation, food and non-alcoholic beverages group contributed 6.6 percentage points, while non-food items accounted for 2.8 percentage points.
“Housing, water, electricity, gas and other fuel contributed the highest at 0.8 percentage points, followed by clothing and footwear and transport at 0.5 percentage points each,” Musepa said.
He said the rest of the non-food group accounted for the remaining 1.0 percentage points.
Musepa indicated that Lusaka province contributed the highest at 3.0 percentage points to the overall annual inflation of 9.4 per cent in January 2023.
Copperbelt province was second, contributed 1.9 percentage points to the overall inflation of 9.4 percent in the month under review.
He pointed out that North-Western provinces contributed 4.0 percentage points, while Western province had the lowest contributions of 0.3 percentage points.
On trade,Musepa indicated that the cumulative total trade for the period January to December 2022 was recorded at K349.7 billion while that of 2021 for the same period was K360.2 billion, representing a 2.9 percent decrease.
“The total value of exports via all modes of transport for the period January to December 2022 was K197.1 billion. Road transport accounted for the highest at K98.7 billion representing 50.1 percent share.
“Rail transport was second at K3.8 billion and Air transport was third accounting for K2.8 billion. Other modes of transport accounted for K91.7 billion,”he said.
Musepa said total value of imports via all modes of transport for the period January to December 2022 was K152.6 billion.
In terms of volumes, he said a total of 5.9 million tonnes of imports was recorded for the period January to December 2022, of which road transport accounted for 3.5 million tonnes , representing the highest share at 59.2 percent.
Rail transport accounted for 3.5 million tonnes , representing the share of 3.7 percent in the period under review.
He said Zambia recorded a trade deficit of K0.5 billion in December 2022 compared to a surplus of K2.8 billion in November 2022.
Musepa said exports mainly comprising domestically produced goods, decreased by 9.2 percent to K14.7 billion in December 2022 from K16.2 billion in November 2022.
This was mainly on account of 10.1, 11.1 and 8.9 percent decrease in export earnings from intermediate goods, consumer goods and raw materials respectively.
Imports decreased by 13.0 percent to K15.2 billion in December 2022 from K13.4?billion in November 2022.
He said this was mainly as a result of 13.5, 31.4 0.7 and 3.4 percent increases in import bills of intermediate goods, capital goods, consumer and raw materials respectively.
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