January 2008 Zambian Inflation rate increases to 9.3 percent from 8.9 percent in December 2007

The January 2008 Zambian inflation rate as measured by the all items Consumer Price Index (CPI) increased in comparison with the month of December 2007.

The increase of 0.4 percentage points in the annual inflation rate was mainly due to the increase in the cost of food products, rent and household energy (electricity tariffs and charcoal), furniture and household appliances.

Annual Inflation Rates for Consumer Price Index Main Groups

The January 2008 Zambian inflation rates for food, beverages and tobacco, rent and household energy, furniture and household goods, other goods and services increased between December 2007 and January 2008.

In the opposite direction, the inflation rates for clothing and footwear, medical care, transport and communication, recreation and education main groups, decreased.

Contribution to the overall inflation

Of the total 9.3 percent of January 2008 Zambian inflation, food products accounted for 3.4 percentage points, while non-food products accounted for 5.9 percentage points.

Annual food inflation

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

This was due to increases in the cost of maize meal, maize grain, other cereals and cereal product, meat, fish, fresh vegetables, beans, shelled ground nuts, fresh fruits, milk and milk products, eggs, oils and fats, and other processed food products.

Non-food inflation

In the month of January 2008 the non-food inflation was recorded at 11.7 percent. This was a reduction from 11.9 percent recorded in December 2007.

Maize grain and maize prices increased in January 2008

A comparison of retail prices between December 2007 and January 2008 showed the following:

The price of a 20 liter tin of maize increased by 7.2 percent from K 16,387 to K 17,575.
The price of a 25 kg bag of roller meal increased by 4.1 percent, from K 29,595 to K 30,800.
The price of 1 kg of fresh fish (Bream) increased by 6.1 percent.
The price of 1 kg of tomatoes increased by 21.8 percent.

December 2007 Trade Surplus

During December 2007, Zambia recorded a Trade Surplus valued at 127.9 billion. This means that the country exported more in December 2007 than it imported in value terms.

Major export destinations In December 2007

Which countries were in the top 5 for Zambia’s export destinations in December 2007? The following:

Switzerland – 47.1 percent
South Africa – 9.4 percent
Democratic Republic of Congo – 8.6 percent
Egypt – 6.0 percent
Saudi Arabia – 5.6 percent

Major Export products in December 2007

The five major exports which accounted for 89.4 percent of Zambia’s export earnings were as follows:

Copper and articles thereof accounted for 71.6 percent of total export earnings.
Base metals such as cobalt accounted for 6.7 percent of total export earnings.
Ores, slag and ash accounted for 4.9 percent of total export earnings.
Cereals accounted for 3.4 percent of total export earnings.
Animal/vegetable fats and oils accounted for 2.8 percent of total export earnings.