Inflation increases to 12.5%

THE year on year annual inflation rate as measured by the all items consumer price index (CPI) for January 2020 increased to 12.5 percent from 11.7 percent recorded in December 2019, Zambia central statistics Agency has said.

Speaking at the monthly bulletin in Lusaka yesterday Zambia Statistics Agency interim statistician General Mulenga Musepa said this meant that on average prices of goods and services increased by 12.5 percent between January 2019 and January 2020.

He said the increase in the annual rate of inflation was mainly attributed to price increase in both food on-food items.

Mr Musepa said the year on year annual food inflation rate for January 2020 was recorded at 15.4 percent compared to 15.2 percent recorded in December 2019.

"This development was mainly attributed to price movements of food items such as Bukabuka, dried bream, dried Kapenta mpulungu, cooking oil and fruits (such as oranges, pineapples and pawpaw)," he said.

Mr Musepa said the year on year annual non-food inflation rate for January 2020 was recorded at 9.4 percent compared to 7.8 percent recorded in December 2019, indicating an increase of 1.6 percentage point

He said this increase was mainly attributed to items such as electricity, diesel and petrol.

And Mr Musepa said Zambia's trade surplus increased by 273.8 percent from K112 9 million in November 2019 to K422.0 million in December 2019.

"This trade surplus means that the country exported more than it imported in nominal terms.

Both imports and exports recorded decreases, through the decrease in imports outweighed that of exports resulting into a rise in the surplus, " he said.

He said exports which mainly comprise domestically produced goods decreased by 1.9 percent from K8, 565. 3 million in November 2019 to K8, 401. 3 million in December 2019.

This decrease, he said,