Annual inflation for October 2023 edges higher to 12.6%

• Annual food inflation for October 2023 increased to13.6 percent from 13.4 percent in the previous month.
• This is due to price movements in Breakfast & Roller meal, Maize grain, Rice, Cassava meal, T-bone, live and frozen Chicken.
• Zambia recorded a trade deficit of K0.5 billion in September 2023 compared to a surplus of K2.3 billion in August 2023.

Zambia Statistics Agency (ZamStats) has disclosed annual inflation rate for October 2023 rose to 12.6 percent from 12 percent recorded in September, 2023.
Addressing Journalists during the monthly dissemination bulletin, Agency Statistician General Mulenga Musepa attributed the rise in inflation to price movements of selected food and non-food items.
Mr. Musepa noted that annual food inflation for October 2023 increased to13.6 percent from 13.4 percent in the previous month, due to price movements in Breakfast & Roller meal, Maize grain, Rice, Cassava meal, Macaroni, Spaghetti as well as Mixt cut, Fillet steak, T-bone, live and frozen Chicken.
He stated that transport inflation has continued to increase, as it rose by 29.7 percent between October 2022 and October 2023, higher than 6 percent recorded in October 2022 and 22.9 percent recorded in September 2023.
Mr. Musepa observed that of the overall 12.6 percent annual inflation, the Food and Non-alcoholic beverages group contributed 7.8 percentage points, while the Non-food group accounted for 4.8 percentage points, out of which, transport contributed the highest at 2.0 followed by Housing, water, electricity, gas & other fuels at 1.0 percentage points.
“The annual non-food inflation for October 2023 was recorded at 11.3 percent compared to 10.1 percent in the previous month. This outturn was mainly attributed to increases in prices of nonfood items such as Purchase of vehicles Toyota Hilux, Toyota corolla, Nissan Hardbody, Petrol, Diesel and Transport fare, Air & Road.”
“The CPI for the Food and Non-alcoholic beverages increased by 13.6 percent between October 2022 and October 2023. This was higher than 12.2 percent recorded in the same month of 2022 and 13.4 percent recorded in September 2023. The index for the Alcoholic Beverages and Tobacco increased by 6.9 percent between October 2022 and October 2023, lower than the 7.7 percent recorded in the same month of 2022 but higher than 6.8 percent recorded in September 2023,” Mr. Musepa stated.
He revealed that annual inflation declined for Eastern province to 10.5% from 12.8% and Western Province to14.9% from 15.2%.
“Of the overall 12.6 percent annual inflation, Lusaka province contributed the highest at 4.2 percentage points followed by Copperbelt and Central provinces which contributed 2.3 and1.3 percentage points respectively. Southern contributed 1.1 percentage points while North-western province had the lowest contribution of 0.4 percentage points,” he stated.
Meanwhile, Mr. Musepa disclosed that the country recorded a trade deficit of K0.5 billion in September 2023 compared to a surplus of K2.3 billion in August 2023.
He said exports mainly comprising domestically produced goods, decreased by 10.0 percent to K17.2 billion in September 2023 from K19.1 billion in August 2023, on account of 8.2 and 76.2 percent decreases in export earnings from Intermediate goods and Capital goods, respectively.
“Imports increased by 5.6 percent to K 17.7 billion in September 2023 from K16.8 billion in August 2023. This was mainly as a result of 11.7, 5.8 and 6.1 percent increases in import bills of Intermediate goods, Consumer goods and Capital goods, respectively.”
“Traditional Exports (TE’s) earnings decreased by 7.7 percent to K10.9 billion in September 2023 from K11.8 billion in August 2023. In terms of share in total exports, TEs accounted for 63.6 percent during the month under review,” Mr. Musepa said.
He added that Non-Traditional Exports (NTEs) earnings decreased by 13.7 percent to K6.3 billion in September 2023 from K7.2 billion in August 2023. In terms of share in total exports, NTEs accounted for 36.4 percent in September 2023.
“The cumulative total trade for the period January to September 2023 stood at K303.8 billion while that of 2022 for the same period was K262.7 billion, representing a 15.6 percent increase.
“The total value of exports via all modes of transport for the period January to September 2023 was K155.6 billion. Road transport accounted for the highest at K74.1 billion representing 47.6 percent share. Rail transport was second at K6.7 billion (4.3 percent) and Air transport was third accounting for K 3.3 billion (2.1 percent). Other modes of transport accounted for K71.5 billion (45.9 percent). “
“The total value of Imports via all modes of transport for the period January to September 2023 was K148.1 billion. Road transport was the highest at K84.8 billion representing 57.2 percent share, followed by Air transport at K7.0 billion (4.8 percent). Rail transport was third at K2.5 billion accounting for 1.7 percent of the total import bill. Other modes of transport accounted for K53.8 billion (36.3 percent).”

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