January 2010 Zambian Inflation – The First Month In The Year Records 9.6 percent

The January 2010 Zambian inflation rate started with 9.6 percent. The rate was less than 9.9 percent recorded in December 2009.

Releasing the Zambia inflation figures on 28th January 2010, Central Statistics Office (CSO) director Efreda Chulu said the reduction in the annual inflation was due to continued reductions in the cost of some food prices.

The country recorded a reduction in the inflation rate despite the hike in fuel prices of 15% near the end of January 2010. It was envisaged that this was likely contribute to the rise in prices of goods and services in the near future.

According to Chuulu, the items contributing to the reduction in the inflation rate were food, beverages and tobacco; clothing and footwear; furniture and household goods; medical care; transport and communication; recreation and education and other goods and services.

However, the annual inflation rate increased for fuel and lighting.

Food Inflation

In the month of January 2010, food inflation accounted for 3.6 percentage points and non-food products accounted for 6.0 percentage points, adding to 9.6 percent as the total inflation rate in the month.

Chuulu said the country witnessed a drop in annual food inflation rate which was recorded at 7.1 percent in January 2010 as opposed to 8.1 percent recorded in December 2009.

The reduction was attributed to the decrease in the cost of fresh vegetables, fresh fruits, oils and fats.

However, increases in prices were noted in other food items such as mealie meal and cereal products.

Non-food Inflation

The non-food inflation increased from 11.8 percent in December 2009 to 12.0 percent in January 2010.

December 2009 Zambian Trade surplus

For seven consecutive months from June 2009 to December 2009, the Zambian government had been recording trade surpluses. In the month of December 2009 a trade surplus valued at K 179 billion was recorded.

Zambia’s Major Exports Products

“Zambia’s major exports products in December 2009 were copper related including copper and articles thereof; ores, slag and ash accounting for 80.7 percent of total export earnings comprising mainly copper cathodes and sections of refined cooper; plates, wire and sheets of refined copper and articles of cobalt”, she said.

The second in place were raw materials with 12.2 percent. These comprised mainly of cooper ores and concentrates; and cobalt ores concentrates.

Next, according to Chuulu, other goods comprising of 7.1 percent of the total exports for December 2009 were consumer goods and capital goods.

Major Destinations of Exports

Chuulu said the five major destinations of exports in December 2009, were Switzerland (64.4 percent), China (8.6 percent), South Africa (7.2 percent), Democratic Republic of Congo (5.1 percent) and United Kingdom (2.1 percent).

These five countries accounted for 87.4 percent of Zambia’s total export earnings.