Zambia’s inflation rate for February 2019 has recorded a decline of 0.1% for the first time in three months after recording a two months flat inflationary rate at 7.8% from December last year to January this year.
The year on year inflation rate as measured by the all items Consumer Price Index (CPI) for February 2019 decreased to 7.8% down from the 7.9% recorded in January 2019 and December 2018. This inflation rates means that on average, prices of goods and services increased by 7.8% between February 2018 and February 2019.
The year on year (Annual) food inflation rate for February 2019 has also recorded a decrease of 0.5 percentage points, this is the greatest decrease in four months and has been attributed to price changes in bread, cereal , meat products and vegetables. These decreases are as a result from early harvest that have started to hit the market.
Acting Director of Census and Statistics Ivan Sikanyiti stated during the monthly bulleting presentation on Thursday morning attended by the Zambian Business Times – ZBT that on the other hand, that the annual non-food inflation rate for February 2019 has recorded an increase of 0.2 percentage point from 7.7 recorded in January 2019 to 7.9 recorded this month.
The Acting Director attributed the increase in this non-food inflation to the price changes of items in the transport CPI main group. Following the last increase of fuel pump prices effected by the Energy Regulation Board – ERB, there has been a rise in transport costs especially in the major cities by commuter bus services.
The increases seen in bus commuter services in major cities of Lusaka, Kitwe and Ndola is expected to see some reversal in March following ERB’s announce fuel price cuts following relative stability of the Kwacha at the new elevated levels and reduction in internal crude oil prices.
Meanwhile the month on month inflation rate for February 2019 was recorded at 0.7% indicating a decrease of 0.4 percentage point compared to 1.1% recorded in January 2019. This month on month reduction means that on average, the price of goods and services decreased by 0.7 percent between January and February this year.
The decrease in the month on month inflation rate is mainly attributed to the price change in the transport main CPI group such as prices of Toyota Hilux, Toyota corolla and Nissan Sentra, based on relative stability of the Kwacha at the new elevated levels. There is also stiff competition among car companies which is currently playing out.
Fresh vegetables and fruit products helps cool off inflation
