June 2010 Inflation Drops To 7.8 Percent

The June 2010 inflation rate dropped to 7.8 percent.

The Central Statistical Office (CSO) director Efreda Chulu who released the June 2010 Zambian inflation figures on 1st July 2010 in Ndola at Savoy Hotel, attributed the reduction in the annual inflation rate to the decrease in some food prices such as mealie-meal, maize grain, fresh vegetables and dried kapenta.

Of the total 7.8 annual percent in June 2010 inflation rate, food products in the consumer price index (CPI) accounted for 1.9 percentage points while non-food products accounted for a total of 5.9 percentage points.

Food Inflation and Non-food Inflation Rates

The annual food inflation rate was recorded at 5.9 percentage points while non-food inflation rate was recorded at 11.8 percent. This was a reduction from the May figure of 6.5 percent and an increment from May figure of 11.6 percent respectively.

Between May 2010 and June 2010, annual inflation rates declined for food, beverages and tobacco; clothing and footwear; furniture and household goods; medical care, recreation and education; and other goods and services. The annual inflation rates increased for rent, fuel and lighting; and transport and communication.

Prices for some selected products

A comparison of prices between May 2010 and June 2010 showed that the national average price of a 25 kg bag of white roller meal reduced by 13.6 percent, from K 46,459 to K 40,161, while the average price of a 20 liter tin of maize grain reduced by 4.4 percent from K 20,473 to K 19,570.

The national average price of a 1 kg of tomatoes declined by 8.2 percent, from K3,806 to K 3,493, while the national average price of 1 kg of dried kapenta (Siavonga) also reduced by 5.9 percent from K 53,874 to K 50,710.

May 2010 Zambian Trade surplus

For twelve consecutive months from June 2009 to May 2010 the Zambian government had been recording trade surpluses. In the month of May 2010 a trade surplus valued at K 762.9 billion was recorded as against K 1,134.3 trillion recorded in April 2010. The trade surplus meant that the country exported more in the month of May 2010 that it imported.

Zambia’s Major Exports in May 2010

The following were the major exports which accounted for 87.8 percent of Zambia’s export earnings:
  • Copper related including copper and articles thereof; and ores, slag & ash collectively accounting for 80.2 percent of total export earnings.
  • Other base materials; other base metals; cements and articles thereof accounting for 2.7 percent of total export earnings.
  • Boilers, machinery & mechanical appliances, accounting for 2.5 percent of total export earnings.
  • Edible fruit and nust, accounting for 2.4 percent of total export earnings

Zambia’s export destinations

In the month of May 2010 the following were five major destinations of Zambia’s exports:

Switzerland – 51.3 percent
China – 16.3 percent
South Africa – 12.7 percent
Democratic Republic of Congo – 6.6 percent
United Arab Emirates – 3.6 percent.

These countries accounted for 90.4 percent of Zambia’s total export earnings.

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