The November 2009 Zambian Inflation Rate Dropped Again To 11.5 percent

The November 2009 Zambian inflation rate went down again to 11.5 percent from 12.3 percent in October 2009, inching closer to attaining a single digit rate at year end.

At the press briefing in Lusaka on 26th November 2009, Central Statistical Office (CSO) director Efreda Chulu said that the reduction in the rate in November 2009 was as a result of decreases in prices of some food and non-food prices.

Mean while, the director said Zambia also recorded a trade surplus in the month of October 2009 amounting to K 299.5 billion.

Changes in the annual inflation

Between November 2008 and November 2009, the annual inflation rates declined for food, beverages and tobacco; rent, fuel and lighting; furniture and household goods; medical care; recreation and education; and other goods and services.

On other hand, the annual inflation rate increased for transport and communication and remained unchanged for clothing and footwear sub groups.

Contribution of different items to the November 2009 Zambian inflation

The total November 2009 Zambian inflation was made up of the following: Food products which accounted for 5.5 percentage points and non-food products accounted for 6.0 percentage points.

Annual food inflation rate

The annual food inflation decreased from 12.3 percent in October 2009 to 11.1 percent in November 2009.

According to Chulu, the reason for this were decreases in the cost of white breakfast meal, fresh vegetables, fresh fish, dried beans, shelled groundnuts, eggs, cereal products, oil and fats, table salt and other processed food products.

However, Chulu pointed out that there were increases in the cost of white roller meal, maize grain, meat, other cereals, sweet potatoes and alcoholic beverages.

Non-food inflation – 11.9 percent

The November 2009 Zambia inflation on non-food items was recorded at 11.9 percent, while that of October 2009 was recorded at 12.3 percent.

Prices for some selected products

A comparison of prices between October 2009 and November 2009 showed that the national average price of 25 kg bag of white breakfast meal reduced by 0.6 percent, from K61,539 to K 61,152. A 1 kg of tomatoes reduced by 7.4 percent, from K3,250 to K 3,008, while the price of 1 kg of fresh fish (bream) reduced by 3.0 percent, from K 15,270 to K 14,806.

However, the price of a 25 kg bag of white roller meal increased by 2.3 percent, from K 45,244 to K 46,289, while the price of a 20 liter tin of maize grain increased by 6.5 percent, from K 22,845 to K 24,325.

October 2009 trade surplus

For five consecutive months, starting form June 2009 to October 2009 the country recorded trade surpluses. In the month of October 2009 the trade surplus was valued at K 299.5 billion. This means that the country exported more in October 2009 than it imported in value terms.

Major export destinations

In the month of October 2009 the following countries were the top 5 for Zambia’s export destinations:

Switzerland – 46.8 percent
South Africa – 13.9 percent
China – 8.6 percent
Democratic Republic of Congo – 7.7 percent
Zimbabwe – 4.9 percent.

These countries accounted for 81.9 percent of Zambia’s total export earnings.

Major Export products in October 2009

The following are the major exports which accounted for 82.7 percent of Zambia’s export earnings:

Ores, slag and ash accounting for 74.0 percent of total export earnings.
Tobacco and manufactured tobacco substitutes accounting for 2.6 percent of total export earnings.
Sugar and sugar confectionery accounting for 2.3 percent of total export earnings.