February 2008 Zambian Inflation rate - up again to 9.5 percent

The February 2008 Zambian inflation rate increased to 9.5 percent from 9.3 percent recorded in January 2008.

Annual Inflation Rates for Main Groups

From January 2008 to February 2008, the annual inflation rates increased for medical care, recreation and education, food, beverages and tobacco, other goods and services.

The February 2008 Zambian inflation rates declined for clothing and footwear, rent and household energy, furniture and household goods, transport and communication main groups.

Contribution of different items to overall inflation

Of the total 9.5 percent annual inflation in February 2008, food products accounted for 4.5 percentage points while non-food products accounted for 5.0 percentage points.

Annual food inflation – 9.1 percent

The annual food inflation rate in February 2008 was recorded at 9.1 percent. The January 2008 was recorded at 6.9 percent.

The main contributors were increases in cost of maize meal, maize grain, other cereals and cereal products, meat, kapenta, fish, fresh vegetables, beans, shelled ground nuts, fresh fruits, milk and milk products, eggs, oils and fats, and other processed food products.

Annual Non-food inflation – 10.0 percent

The annual non-food inflation rate went down to 10.0 percent from 11.7 percent recorded in January 2008.

Maize grain and maize meal prices increased again in February 2008

A comparison of retail prices between January 2008 and February 2008 showed the following:

• The price of a 20 liter tin of maize grain increased by 2.9 percent from K 17,575 to K 18,083.
• The price of a 25 kg bag of roller meal increased by 2.6 percent, from K 30,800 to K 31,603.
• The price of 1 kg of dried kapenta (Mpulungu) increased by 13.1 percent.
• The price of 1 kg of tomatoes increased by 31.1 percent.

January 2008 Trade Deficit

The month of January 2008 saw the country recording a Trade Deficit valued at K 155.0 billion. This means that the country exported less in January 2008 than it imported in value terms.

Major export destinations In January 2008

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

Switzerland – 31.1 percent
China – 21.1 percent
South Africa – 12.7 percent
Egypt – 7.5 percent
Saudi Arabia – 5.3 percent
Republic of Thailand – 5.1 percent
Democratic Republic of Congo 3.5 percent

Major Exports in January 2008

The four major exports which accounted for 90.1 percent of Zambia’s export earnings were as follows:

• Copper and articles thereof accounted for 73.0 percent of total export earnings.
• Base metals such as cobalt which are copper related accounted for 8.5 percent of total export earnings.
• Ores, slag and ash accounted for 6.3 percent of total export earnings.
• Cereals accounted for 2.3 percent of total export earnings.

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