Zambia’s annual inflation rate has continued shooting up with the year on year inflation for the month of November 2023 reaching 12.9 percent (about 13 percent) from 12.6 percent in October 2023.
Earlier prominent Lusaka based Economist had challenged the Zambia Statistical Agency – ZAMSTATS, to start releasing inflation statistics relevant to the general Zambian citizenry as the 12.6 percent inflation rate as of October 2023 which has now increased to 13%, does not reflect the true picture of what is on the ground adding that the Zambia’s inflation is hovering around 20 -30 percent if the key consumer products are considered.
According to the Zambia Statistics Agency –ZAMSTATS- report, the 12.9 percent increase for November 2023 has been attributed to price increases in food and non-food items. The annual food inflation is reported to have increased to 13.7 from 13.6 percent in October 2023.
The continued acceleration of Zambia’s inflation rate to have had several negative effects on the already struggling economy. This will likely lead to a decrease in purchasing power as prices of goods and services increase which would in turn lead to a decrease in consumer spending and a slowdown in economic activity. This will be particularly challenging for especially low-income households who are already struggling to afford basic necessities.
The 12.6 percent is against the central banks 6 – 8 percent target for this year.
ZAMSTAT Statistician-General Mulenga Musepa further indicated that the overall monthly inflation was recorded at 0.9 percent from 0.8 percent in October 2023, and food inflation increased to 0.9 percent from 0.7 percent.
Musepa stated that monthly non-food inflation has remained at 0.9 percent as recorded in October whereas the annual non-food inflation increased to 11.8 percent from 11.3 percent in October.
He said the provincial inflation increased with Western province having contributed the highest percentage of 14.7 percent which is a reduction from the previous 14.9 percent last month.
Western Province was followed by Lusaka Province which contributed 14.1 percent from 14.5 percent, Central Province 13.7 percent from 12.p percent, Luapula Province 13.6 percent from 13.9 percent, North Western Province 13.0 percent from 11.9 percent, Northern Province 12.8 percent from 13.1 percent, Southern Province 12.3 percent from 10.9 percent, and Eastern Province which contributed 10.2 percent from 10.5 percent respectively.
Musepa also revealed a reduction in trade for the month of October 2023 by 7.0 percent to K36.6 billion from K34.09 billion in September 2023. A trade deficit of K1.0 billion has also been recorded for the month of October 2023 compared to a deficit of K0.8 billion recorded in September 2023.
In regards to exports, Musepa revealed that exports decreased by 8.0 percent from K15.8 billion in October 2023 to K17.2 billion in September 2023.
Export earnings decreased from refined copper in October 2023 by 14.8 percent to K9.2 billion from K10.8 billion in September 2023.
