The annual overall inflation rate for the month of March 2020 has increased to 14 %, up from 13.9 % reported in the previous month. This development was mainly on an account of price increases in nonfood items such as vehicles, and airfares, that culminated into nonfood inflation increasing to 12%, up from 11.6 % in February 2020. The Zambia Statistic Agency have Reported.
During the monthly briefing monitored by Zambian Business Times-ZBT, on March 26, 2020, Zambia Statistic Agency Interim Statistician General Mulenga Musepa said that on the positive side the country recorded an annual food inflation for the month slowing down to 15.2% from 15.9% in February 2020.
He said this, was explained by a slow down inflation related to items such as roller meal, maize grain, rice, fish, and vegetables. He added that with respect to the monthly inflation the country is reporting positive developments as the month on month inflation slowed down to 1.2% from 1.9% in the previous month and both monthly food and nonfood inflation contributed to the slowdown of the overall monthly inflation.
‘‘The monthly food inflation in the month under review, declined to 1.2% from 1.3% in February 2020. Further the nonfood inflation declined to 1.2% from 2.7% in February. These developments, were driven by the general price movements of fruits, vegetables and the clothing materials.
‘‘We also do segregate the overall inflation for the month, according to regions, so during the month of March, Lusaka Province recorded a highest annual inflation at 16.8% followed by Southern Province at 14.7 % and western province had a lowest annual rate of inflation at 9.4%. and from this developments Lusaka and Copperbelt had a highest influence on the overall inflation at 14% in March 2020, with lowest influence coming from North-western and Western provinces at 0.4% points,’’ said Musepa.
A review by analysts at ZBT shows that the non-food inflation items alluded to such as motor vehicles and airfares which contributed to the increased inflation rate related to US dollar denominated or imported items. These items are pegged in US dollars and their market prices have increased due to the Kwacha depreciation.
The Kwacha has continued to slide month on month with the exchange pair now crossing the K18 per 1 US dollar levels. ZBT has reached out to the Bank of Zambia – BOZ to state what action is being taken to stem the further Kwacha slide, and responses are delayed due to some internal sensitivities of the matter.
