Zambia’s inflation rate has returned to double digits for the first time in 11 months in April as a sharp depreciation in the kwacha in the last quarter fired by slow progress in debt restructuring.
The annual inflation rate in Zambia has accelerated to 10.2% in April 2023, up from 9.9% in March, returning to double digits for the first time in almost a year.
The April 10.2 percentage is 2.2 percentage points above the top limit of the central bank’s 6%-8% target range.
According to official statistics the upward pressure came from both food 11.6% from 11.8% in March while non-food products quickened to 8.3% compared to 7.3% in March.
Speaking in Lusaka during the monthly bulletin dissemination attended by the Zambian Business Times – ZBT, Statistician-General Mulenga Musepa disclosed that of the overall 10.2 percent annual inflation, Lusaka province contributed the highest at 3.4 percentage points followed by Copperbelt and Central provinces at 1.9 and 1.0 percentage points, respectively. Eastern and Southern provinces contributed 0.9 percentage points each, while North-western province had the lowest contribution of 0.3 percentage points.
Experts have hinted that the acceleration in inflation, upside risks from higher electricity tariffs for large users and the volatility in the currency may persuade the Bank of Zambia’s monetary policy committee to lift the key interest rate, which is at 9.25%, for a second time this year at its May 17 meeting.
On a monthly basis, consumer prices rose by 0.9% in April, after increasing 1.1% in the prior month.
Overall monthly inflation for April 2023 was recorded at 0.9 percent compared with 1.0 percent in the previous month. This outturn was mainly attributed to price decreases in selected food items.
