Beef, fish, and chicken have continued to drive the prices of food upwards in June 2021 while non-food items remained relatively flat. Zambia’s Annual inflation for June, 2021 increased to 24.6 percent (about 25%) from 23.2 percent in May, 2021due to price increases in some food items.
This shows that on average, prices of goods and services increased by 24.6 percent between June 2020 and June 2021.
Zambia Statistics Agency interim statistician General Mulenga Musepa stated during the monthly bulleting presentation on Thursday 24 June 2021 attended by the Zambian Business Times – ZBT that annual food inflation for June, 2021 was recorded at 31.2 percent compared to 28.5 percent in May 2021, an increase of 2.7 percentage points.
Musepa said this was mainly attributed to increase in prices of food items such as Meats (Fillet steak, Rump steak, Brisket, Ox-liver, Offal’s, Goat meat, Chicken Frozen, Chicken Live); Fish (Fresh Kapenta, Dried Kapenta Mpulungu); and Coffee, Tea and Cocoa (Instant Coffee Prima, Instant Coffee, Tea bags, Cocoa.
Among the most essential foodstuffs, live chicken recorded the highest year on year inflation rate at 75.12% while T-bone and chicken frozen recorded second and third at 58.81 and 57.48% respectively.
Other meat products such as Brisket, rump steak, mixed cut, fillet steak, kidneys and goat meat year on year inflation was recorded between 23% to 55%.
On fish products, fresh Kapenta was recorded at 58.9 % while dried Kapenta Mpulungu year on year inflation was recorded at 21.32%. Meat prices generally have escalated across most types.
“The annual non-food inflation rate for June 2021 was recorded at 17.1 percent same as that recorded in May 2021.
“The Food and Non-alcoholic beverages group contributed 16.7 percentage points, while Nonfood items accounted for 7.9 percentage points to the overall inflation rate of 24.6 percent,” he said.
Mupesa said of the 7.9 percentage points, the Housing, water, electricity, gas and other fuels contributed the highest at 2.6 percentage points followed by Furnishings, household equipment and routine household maintenance and Transport groups that contributed 1.5 percentage points each.
He said the rest of the Non-Food groups accounted for the remaining 2.3 percentage points.
“The monthly inflation rate for June, 2021 was recorded at 1.3 percent, a decrease of 0.7 percentage points from 2.0 percent the previous month (see Figure 5).
“The slow-down in the monthly inflation rate was attributed to general price movements of both food and non-food items,” Mupesa said.
He said the monthly food inflation rate for June, 2021 was recorded at 1.5 percent, a decrease of 1.0 percentage points from 2.5 percent recorded in May, 2021 due to the decrease in food inflation related items such as oils and Fats (cooking oil and Fruits (Oranges, lemons, watermelon); and groundnuts.
Mupesa said non-Food inflation rate for June, 2021 was recorded at 1.1 percent, indicating a decrease of 0.3 percentage points from the 1.4 percent recorded in May, 2021 mainly due to price movements of non-food items such as clothing materials, shoes and other footwear.
Meanwhile, an analysis on a monthly basis, of retail prices between May, 2021 and June, 2021 shows that the national average price of a 25 kg bag of Breakfast Mealie Meal decreased by 1.05 percent from K142.32 to K140.83 while the national average price of a 25 kg bag of Roller Mealie Meal decreased by 1.24 percent from K113.76 to K112.35.
The national average price of a 20-litre tin of Maize Grain decreased by 5.79 percent from K62.16 to K58.56
On an annual basis, the analysis of retail prices between June, 2020 and June, 2021 shows that the national average price of a 25kg bag of Breakfast Mealie Meal decreased by 1.10 percent from K142.39 to K140.83 while the national average price of a 25 kg bag of Roller Mealie Meal decreased by 1.78 percent from K114.39 to K112.35
The national average price of a 20-litre tin of Maize Grain increased by 9.48 percent from K53.49 to K58.56.
