The annual inflation rate for September, 2021 has decreased to 22.1 percent from 24.4 percent recorded in August 2021 mainly due to price movements in both food and non food items.
This was mostly on account of the appreciation of the Kwacha which resulted in reduced prices for mostly imported and US dollar exchange rate linked goods. Clawing back the Kwacha value coupled with stabilization remains one of the critical path for improvement of macro economic variables for Zambia.
This means that on average, prices of goods and services increased by 22.1 percent between September 2020 and September 2021. Prices of food items such as fish, (dried bream medium and fresh kapenta), Margarine, eggs, cooking oil, sugar as well as vegetables decreased.
Price decreases in Purchases of Motor vehicles such as Toyota Hilux, Toyota corolla, Nissan Almera 1.5 L Acenta, Nissan Hardbody); and Charcoal were also recorded.
Speaking during the September monthly bulletin which the Zambian Business Times – ZBT attended, Zambia Statistics Agency (ZamStats) Interim statistician general Mulenga Mupesa said the decrease in the annual rate of inflation was mainly attributed to price movements in both food and non-food items.
Mupesa said the annual food inflation for September, 2021 was recorded at 29.6 percent compared to 31.6 percent recorded in August 2021, a decrease of 2.0 percentage points.
He said this was mainly attributed to decreases in prices of food items such as Fish (Dried bream medium, Fresh kapenta); Vegetables (Rape, Chinese cabbage, Onion, Impwa, Cabbage, Green beans); Margarine, Eggs, Cooking oil and Sugar.
“Annual non-food inflation for September 2021 was down to 13.6 percent from 16.3 percent in August 2021. The decrease in inflation rate was mainly attributed to price decreases in Purchases of Motor vehicles (Toyota Hilux, Toyota corolla, Nissan Almera 1.5 L Acenta, Nissan Hardbody); and Charcoal,” he said.
Mupesa said of the 22.1 %, the Food and Non-alcoholic beverages group contributed 15.7 percentage points, while Non-food items accounted for 6.4 percentage points to the overall inflation rate of 22.1 percent.
He said of the 6.4 percentage points, the Housing, water, electricity, gas and other fuels contributed the highest at 2.2 percentage points followed by Furnishings, household equipment and routine household maintenance.
Mupesa said the Clothing and Footwear groups contributed 1.6 and 1.2 percentage points, respectively. The rest of the Non-Food groups accounted for the remaining 1.4 percentage points.
“At provincial level, Lusaka province contributed the highest at 6.1 percentage points to the overall annual inflation rate of 22.1 percent recorded in September, 2021.
“Copperbelt province was second highest, contributing 4.8 percentage points while North Western province had the lowest contribution of 0.7 percentage points,” he said.
