Inflation pressures have persisted in the second quarter of 2020, with the year- on-year (annual) inflation rate for May 2020 increasing to 16.6%, up from 15.7% recorded in April 2020.
Zambia has for the past months continued to record an increase in inflation rate mostly driven by the lagged effects of the increase in retail fuel pump price and electricity tariffs, as well as the pass-through from the notable depreciation of the Kwacha against the US dollar resulting in imported products price hikes.
Meanwhile, the Bank of Zambia – BoZ has maintained that although the projected path for inflation is higher than the February 2020 MPC forecast horizon, it is expected to trend towards the upper bound of the 6-8% medium-term target range at the end of the forecast horizon.
And speaking at a briefing monitored by the Zambian Business Times – ZBT on May 28, 2020, Zambia Statistics Agency – ZamStats Interim Statistician General Mulenga Musepa has explained that the increase in the May 2020 annual inflation rate means that on average, prices of goods and services increased by 16.6% between May 2019 and May 2020.
He has disclosed that the increase in the annual inflation rate was attributed to price increase in both food and non-food items. Musepa said the food inflation increased to 17.5% from 17.0% of last month and the increase was mainly attributed to increase in prices of food items such as Fish Fillet steak, Mixed cut, Beef, Sausage, Dried bream, Frozen fish, Bukabuka and oils such as Cooking oil, Margarine and Butter. Other foods like table salt and Soups also recorded increased prices.
He added that the non-food inflation increased to 15.5% from 14.2% and the increase in the annual non-food inflation was mainly attributed to price increases in items such as Charcoal, Household Textiles, Soaps, and Pharmaceutical products.
And on provincial level, Northern Province recorded the highest annual inflation at 12.0% followed by Lusaka Province at 18.5%. North-Western province has the lowest contribution of 0.5% percentage points.
