April 2008 Zambian Inflation rate - up again to 10.1 percent

The April 2008 Zambian inflation rate rebounded to double digits. The rate was recorded at 10.1 percent increasing from 9.8 percent recorded in March 2008.

Changes in annual inflation rates for CPI (Consumer Price Index) Main Groups

Between March 2008 and April 2008, the annual inflation rates increased for food, beverages and tobacco, rent and household energy, furniture and household goods, medical care, recreation and education.

In the same period, the April 2008 Zambian inflation rates decreased for clothing and footwear, transport and communication main groups..

Contribution of different items to overall inflation

The increase of 0.3 of a percentage point in the annual inflation from March 2008 to April 2008 was as result of the increase in the cost of food products.. In April 2008, food products accounted for 4.8 percentage points while non-food products accounted for 5.3 percentage points.

Annual food inflation rate – 9.8 percent

The annual food inflation rate in April 2008 was recorded at 9.8 percent, compared to 9.1 percent in March 2008.

The main contributors to the April 2008 Zambian inflation were increases in the cost of maize meal, other cereals and cereal products, cooking oil, milk and milk products, table salt and sugar and other processed food products.

There were partial offsets in these increases by reductions in the cost of maize grain, fresh vegetables, fish, dried kapenta, meat, eggs, dried beans, tubers, and shelled groundnuts.

Annual Non-food inflation – 10.5 percent

The annual non-food inflation rate increased to 10.5 percent from 10.4 percent recorded in March 2008.

Maize grain products declined in April 2008

A comparison of retail prices between March 2008 and April 2008 indicated the following:

• The price of a 25 kg bag of breakfast meal increased by 3.9 percent from K 41,984 to K 43,615.
• The price of a 20 liter tin of maize grain declined by 1.0 percent, from K 20,006 to K 19,814.
• The price of 1 kg of dried kapenta (Siavonga) declined by 2.9 percent.
• The price of 1 kg of tomatoes declined by 8.8 percent.
• The price of a 750mls bottle of cooking oil increased by 10.4 percent.

March 2008 Trade Surplus

In the month of March 2008 Zambia recorded a Trade Surplus valued at K 346.0 billion. This means that the country exported more in March 2008 than it imported in value terms.

Major Exports in March 2008

The four major exports which accounted for 92 percent of Zambia’s export earnings were as follows:

• Copper and articles thereof accounted for 73.3 percent of total export earnings.
• Base metals such as cobalt which are copper related accounted for 8.3 percent of total export earnings.
• Ores, slag and ash accounted for 7.6 percent of total export earnings.
• Cereals accounted for 2.8 percent of total export earnings.

Major export destinations In March 2008

The five major destinations of Zambia’s exports were the following:

Switzerland – 47.9 percent
Egypt – 14.6 percent
South Africa – 5.4 percent
Democratic Republic of Congo3.9 percent
China – 3.7 percent

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