May 2008 Zambian Inflation quickens to 10.9 percent

The May 2008 Zambian inflation rate increased to 10.9 percent. This rate was 0.8 of a percentage point higher than the April rate of 10.1 percent.

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

Between April 2008 and May 2008, the increment in the rate of inflation was observed in food, beverages and tobacco, medical care, transport and communication, and other goods and services.

The May 2008 Zambian inflation rates for clothing and footwear, rent and household energy, furniture and household goods main groups declined in the same period..

Contribution of different items to overall inflation

The increase from April 2008 to May 2008 was attributed to the increase in the cost of food products.

In May 2008, food products accounted for 5.7 percentage points while non-food products accounted for 5.2 percentage points.

Annual food inflation rate – 11.7 percent

The annual food inflation rate for food went up in May 2008. The increases were noticed in the cost of breakfast meal, other cereals and cereal products, meat, fresh vegetables, cooking oil, milk and milk products, table salt, sugar and other processed food products.

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

Annual Non-food inflation – 10.1 percent

The annual non-food inflation rate decreased from 10.5 percent as at April 2008 to 10.1 percent recorded in May 2008.

Maize grain products declined in May 2008

The national retail prices between April 2008 and May 2008 indicated the following:

• The price of a 25 kg bag of breakfast meal increased by 3.8 percent from K 43,615 to K 45,260.
• The price of a 20 liter tin of maize grain declined by 18.4 percent, from K 19,814 to K 16,170.
• The price of 1 kg of dried kapenta (Siavonga) declined by 1.9 percent.
• The price of 1 kg of tomatoes declined by 25.9 percent.

April 2008 Trade Surplus

In the month of April 2008 Zambia recorded a Trade Surplus valued at K 3.55 billion. This means that the country exported more in April 2008 than it imported in value terms.

Major Exports in April 2008

The three major exports which accounted for 87.6 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 8.4 percent of total export earnings.
• Ores, slag and ash accounted for 6.2 percent of total export earnings.

Major export destinations In April 2008

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

Switzerland – 53.5 percent
Egypt – 9.2 percent
South Africa – 6.3 percent
Democratic Republic of Congo 4.6 percent
Korea Republic – 4.2 percent

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