INFLATION RATE TO DROP 9.1PC THIS MONTH

ZAMBIA’S annual inflation rate for this month is expected to drop to 9.5 and 9.1 percent due to a stronger Kwacha and improved supply of foodstuffs.

This is according to a prediction by Zanaco Bank plc, which expects the downtrend in annual inflation to be sustained by a stronger Kwacha, improved supply of locally grown foodstuffs whose harvest has started as well as the ongoing base effect.

The country’s annual inflation remained on the downhill after falling for the 10th month in a row by 130 basis points (bps) to a near three-year low of 10.2 percent last month, as price increases cooled for both food and non-food items.

In particular, food inflation slowed the most in four months by 180 bps to 12.3 percent, the lowest since August 2021.

In its monthly Economic Review and Outlook for May, Zanaco Bank indicated that the inflation deceleration which has been ongoing since last August is set to continue with numbers for the months of June and July 2022 expected to come in at 9.5 percent and 9.1 percent, respectively.

“Besides, demand for durable non-essential items remains subdued such that some trading places have continued to offer promotional prices to encourage sales. susceptible to upside risks. It stated that these included a resurgence in crude oil price on the international market as the Russo-Ukrainian war lingers, an unexpected depreciation of the Kwacha as well as stronger regional demand for the country’s agricultural output.