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Zambia’s inflation sharply falls to 7.2 %, as GDP growth expected to drop to 6.5 %

Time Posted: December 29, 2011 12:08 pm

An unidentified woman and her daughter selling vegetables and other foodstuffs at Kapapa market in Chipata, Zambia

Zambia’s consumer inflation sharply slowed in December on lower food prices , the Central Statistics Office said said today.

Inflation was at 7.2 percent year-on-year in December from 8.1 percent in November and was expected to end the year at 7 percent, the CSO said.

“The decrease is mainly attributed to a reduction in some food prices,” the statistics agency said.

The Consumer Price Index (CPI) used to compute inflation covers three series, namely, the Metropolitan Low Income Group, which covers Low Income households in the urban areas, the Metropolitan High Income Group, which covers High Income households in the urban areas and the Non-Metropolitan Group, covering households in rural areas.

The Metropolitan areas comprise the 10 major towns. These include Livingstone, Lusaka urban, Kabwe urban and all the Copperbelt towns. The Metropolitan areas are further classified into Low and High Income households. All the small towns and the rural parts form the Non-Metropolitan.

And Zambia expect GDP growth to drop to 6.5 percent in 2011 from 7.6 percent last year, with lower expansion seen in the primary sector.

“The slower growth in the primary sector is attributed to the expected smaller increase in the mining output,” the CSO said.

It said Zambia had recorded a 315.9 billion Zambian kwacha surplus in November 2011 compared with a 187.5 billion kwacha surplus in October

39 Comments

  1. vote
    flag Matworld says: Matworld
    December 29, 2011 at 12:16 pm |

    More money in the pocket.

    Reply
  2. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 12:29 pm |

    RB and his minions must be licking their lips at the figures in the last paragraphs!

    God basheteni would have dipped their hands in half of that!

    Reply
  3. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 12:32 pm |

    OK inflation has gone down but GDP not doing well. Where is Mr Capitalist to explian this to me please?

    Reply
    1. vote
      flag Engines says: Engines
      December 29, 2011 at 12:40 pm |

      @ Italian Bunga Bunga (Original). Food basket from which inflation is measures always goes down during rain season. This is a country where shonkono and fulufute susbtitutes dry kapenta and Ubowa substitutes beef during this time. sometimes a mango can move from lunch to full meal. if you gone have a food busket with such elements in it then expect its cost to be low and therefore low inflation

  4. vote
    flag Engines says: Engines
    December 29, 2011 at 12:33 pm |

    GDP down 6.5% and dollar upto to K5150 such is what sets the national Agenda in Europe not the Linyungandambo asking for his birth rights that he was promised within 90 days.

    Reply
  5. vote
    flag MMD Chief Bootlicker says: MMD Chief Bootlicker
    December 29, 2011 at 12:40 pm |

    And usual misinterpretation of facts from the PF Dumber and Dumber. I bet drop is GDP is attributed to MMD government while Drop in Inflation is attributed to PF Government. I guess the silly Donchi Kubeba slogan rumbles on.

    Truth is Zambia has been recording Trade Surplus since the Copper Bull Market started firing on all its cylinders. This Trade surplus is not new and we have even have had bigger surplus under RB.

    And drop in GDP is due to low production from copper mines and obviously that was due to election uncertainty. Inflation was MMD government forecast and target to get 7.2 by year end and MMD archived that and can walk around proud, regarding what we inherited.

    Reply
    1. vote
      flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
      December 29, 2011 at 12:52 pm |

      You don`t have to insult you mug! Just explain things if you can you pleb!

    2. vote
      flag Yambayamba says: Yambayamba
      December 29, 2011 at 1:22 pm |

      Spoiled your well articulated points by insulting, is this an inborn trait among Zambians?

  6. vote
    flag student economist says: student economist
    December 29, 2011 at 12:47 pm |

    Much as this may be ‘wow’ the problem is that the people have not seen this alleged reduction in food prices and other goods that make up the food baskets of many households and the cost of business has increased,rather than reduced; case in point is the increase in business permits from k200,000 to just over k1,200,000. I recomend the exploration of oil & other minerals by either the GRZ or local companies so that locals enjoy their own mineral resources, directly/indirectly. 2. Aggressive improvement of the agriculture,tourism,service(all) & education sectors. Lasstly,promotion of entrepreneurship. I personally think there are too many barriers to setting up business successfully. We hope to feel the improving inflation and not just read about it.

    Reply
    1. vote
      flag martina says: martina
      January 6, 2012 at 2:01 pm |

      i need help,how is inflation measured by the C.S.O

  7. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 12:54 pm |

    Boot fimofimo where are you blogging from? Remember the promise you made just before the elections?

    Buah ha ha ha ha ha ha ha ha ha ha!

    Reply
  8. vote
    flag Mr Bean says: Mr Bean
    December 29, 2011 at 12:57 pm |

    I totally disagree with those surveyors bcoz i just took my wife to soweto last week and she cud not buy the relish she required bcoz all the capentas and likes prices has gone up

    Reply
  9. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 1:00 pm |

    @#8 No wonder your wife couldn`t buy what she wanted, there is nothing Capenta in Zed mate!

    Reply
  10. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 1:02 pm |

    @#8 Mr Bean. No wonder your wife couldn`t buy what she wanted, there is nothing called Capenta in Zed mate!

    Reply
  11. vote
    flag MMD Chief Bootlicker says: MMD Chief Bootlicker
    December 29, 2011 at 1:05 pm |

    Am blogging from Mauritius, and enjoying my holiday and thinking of moving my private consultancy firm here. The Tax incentives are awesome.

    My Firing from the Embassy and subsequent death from depression has been grossly over exaggerated.

    Am on Holiday and will be back at the Embassy in SA in January, to offer my services that any government cannot do without. It is about marketability and professionalism and not cadre mentality as a lot of you.

    Am around my friend, hopefully I will be able to blog more politically after we have a president as MMD in April. We’re certainly bouncing back, come 2016.

    Reply
    1. vote
      flag Punch Drunk Cobra says: Punch Drunk Cobra
      December 29, 2011 at 1:18 pm |

      lol

  12. vote
    flag MMD Chief Bootlicker says: MMD Chief Bootlicker
    December 29, 2011 at 1:06 pm |

    MMD is NOT and WAS NOT a LIBERATION PARTY to die a natural death. We have structures and we have the best brains any party can boast about in Zambia.

    We will be BACK and we shall be the first Political party to bounce back on the continent of Africa!!!

    Reply
    1. vote
      flag Yambayamba says: Yambayamba
      December 29, 2011 at 1:39 pm |

      Take care of the thieves in your MMD first, maybe then you will have a chance! The claim of witch-hunt by thieves amongst your bunch really makes you people appear more and more unattractive as a party—-man up and stop pretending you were all Angels, otherwise 2016 may be UPND’s time, LOL!!

  13. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 1:08 pm |

    #11 Bootfimofimo. I like your loyalty to MMD. You are more than a cadre mate. Keep it up and God bless you but my prayer is he doesn`t allow you to steal any more lol!

    Reply
  14. vote
    flag Engines says: Engines
    December 29, 2011 at 1:11 pm |

    Food basket from which inflation is measures always goes down during rain season. This is a country where shonkono and fulufute susbtitutes dry kapenta and Ubowa substitutes beef during this time. sometimes a mango can move from lunch to full meal. if you gone have a food busket with such elements in it then expect its cost to be low and therefore low inflation

    Reply
  15. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 1:14 pm |

    Boot fimo fimo. Trouble is by the time it`s 2016, people in rural areas where you thought you were going to gunner supper will have heard you have been booted out and for them the wounds will be fresh.

    I honestly would love to see an opposition but it certainly is clear it will not be MMD. Shame HH has got it wrong. You are right, there has never been an opposition party in Africa which has bounced back.

    Abandon ship mate, abandon ship, get your life jacket on and abandon ship!

    Cheers!!!!!!

    Buah ha ha ha ha ha ha ha ha ha ha!

    Reply
  16. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 1:16 pm |

    Boot fimo fimo now that RB is going, are you going to change your avator?

    Reply
  17. vote
    flag allandickerson says: allandickerson
    December 29, 2011 at 1:17 pm |

    Stockpiling simply means trying to buy items before you need them so you don’t have to pay full price. We always sample from “Get Official Samples” until we need something to go out and buy it

    Reply
  18. vote
    flag Punch Drunk Cobra says: Punch Drunk Cobra
    December 29, 2011 at 1:23 pm |

    The figures are okey but its still too early for PF figures, this is just RB momentum. Infact surplus has started dropping sharply if you compared to last year.

    Reply
  19. vote
    flag REAL MAN says: REAL MAN
    December 29, 2011 at 1:32 pm |

    “An unidentified woman and her daughter selling vegetables and other foodstuffs at Kapapa market in Chipata, Zambia”

    That is the caption on your photo. How did you know that it is her daughter when she is unidentified and unless I’m blind, I can’t see any vegetables. Ba kolokombwa imwe.

    Reply
  20. vote
    flag Gokigo Milazhe says: Gokigo Milazhe
    December 29, 2011 at 1:38 pm |

    Inflation has gone down primarily because there has been low demand of commodities due to the fact that people do not have money to spend. The government has not started paying for goods and services that have been waiting to be paid for since the elections – as a result many people can’t even pay their workers properly because govt is the biggest provider. If there is low demand, then prices will not move. The more interesting statistic here is the low GDP growth; earlier in the year it had been projected that GDP would grow higher than 2010. Ofocurse elections and change of govt have played a part – but mostly it is because many producers have held on to their recourses instead of investing because they are still unsure about Sata and his policies. Simples….

    Reply
  21. vote
    flag MMD Chief Bootlicker says: MMD Chief Bootlicker
    December 29, 2011 at 1:38 pm |

    #16 Italian Bunga Bunga my friend, I think that is a good suggestion and I have thought about it, but again it is my trade mark and people know me for that gravator, I think I will just keep it for legacy reasons really. RB did a lot of good for this country (if you are an economist , you will agree) during his 3 years term and just in honour of him and recognition of his contributions, I will keep it.

    Reply
  22. vote
    flag Kolala II says: Kolala II
    December 29, 2011 at 1:39 pm |

    I do not appreciate this figures. A survey which was conducted in Lusaka’s Kabulonga area had unexpected results. It showed that the Poverty rate higher when compared with other residential areas. This was due to the fact in the servants quarters were more than 5 people staying their and the Boss’s House had and average of 3 people( Father Mother & one Child). Essence this had the potential to show that the Poverty level in kabulonga is the Highest. 

    So this reduction in Inflation is related to what and what are the real benefits accruing to the majority Zambia citizens. It is Sad story.

    Reply
  23. vote
    flag Italian Bunga Bunga (Original) says: Italian Bunga Bunga (Original)
    December 29, 2011 at 1:47 pm |

    @Boot fimo fimo.

    Good luck mate and take care. I am gone now. Happy festives! At the end of the day we are all Zambians mate. Nothing will ever change that and yes we are probably passionate about our country.

    Reply
  24. vote
    flag pounds and pence says: pounds and pence
    December 29, 2011 at 1:48 pm |

    All economies fluctuate!!!! It’s perfectly normal there’s nothing to worry about….Chill out

    Reply
  25. vote
    flag Pafwenamwine says: Pafwenamwine
    December 29, 2011 at 1:59 pm |

    21 MMD Chief Bootlicker, on papers My mbuya Ruphia did well but translating that into economic indicators it is not true. Ruphia must have the vision to uplift the living standards of Zambians but his advisors had opposite visions, motives and that was to enrich themselves by making the Anti corruption Commission, Drug enforcement commission and the police weaker to steal to the bone. People like George Kunda are not worth to trust. He misled Levy over Bulaya and other legal issues that When Ruphia took over again George misled Ruphia over ACC sec37 removal and this is why former leaders in the Ruphia led Govt accummulated wealth with no sense of guiltness or care. Even people from foreign embassies are part of this scum hopeefully Boot you are clean and dedicate to serve Mother Zambia.

    Reply
  26. vote
    flag Pafwenamwine says: Pafwenamwine
    December 29, 2011 at 2:10 pm |

    #23 Pound and pence how are you mate, I strongly agree with you. Just imagine in Zambia if we can have incentives like the UK were you can go to a supermarket where you can have the choice to buy one get one free. These incentives can boast the economy espeacially for those who likes Alcohol 3 boxes £20. aaaaah my Mbuyas from Eastern province the Phiri, Banda, Lungu, can build wall fences using boxes of alcohol like Ringo Phiri the one who stole billions in 1995 in Ndola who builts a wall fence using sausages.

    Reply
  27. vote
    flag Gani says: Gani
    December 29, 2011 at 2:13 pm |

    @20 Gokigo Milazhe
    Demand is inversely proportional to price, ceteris paribus. With this reminder you can intelligently correct your comment if you want to argue along the lines of demand and supply.

    Reply
  28. vote
    flag Objective says: Objective
    December 29, 2011 at 2:21 pm |

    Many PF fans hv previously said that they do not work with economic indicators. Why are they commenting on infaltion GDP?

    Reply
  29. vote
    flag JJP says: JJP
    December 29, 2011 at 2:25 pm |

    Pafwenamwine, we used to have ‘the incentives’ in Zambia, especially Mosi and Castle where one would buy two and get one free but Chibamba Kanyama banned them saying they were an encouragement to alcohol abuse.

    Reply
  30. vote
    flag hopani says: hopani
    December 29, 2011 at 2:42 pm |

    27 Objective, Answer = to reap where they did not sow. You know what our ancestors do, don’t you?

    Reply
  31. vote
    flag Mo taim says: Mo taim
    December 29, 2011 at 5:48 pm |

    Donchi kubeba at work.Benefits of the 90 days.

    Reply
  32. vote
    flag Sharp Shooter says: Sharp Shooter
    December 29, 2011 at 11:02 pm |

    With the Kwacha depreciating by close to 10%(1,000 BPS) Importers and local entrepreneurs who import input materials are under pressure cos the imports are now expensive(O fcourse this is good news to exporters).This will bring about cost-push inflation even if demand is low or the same(The Bakers can attest to this hence the increase in bread price).Question is, Is Zambia a net exporter or importer? and what kind of imports and exports constititute our food basket for our CPI?Lets wait for january CPI.

    Reply
  33. vote
    flag mac chilala says: mac chilala
    January 2, 2012 at 10:52 am |

    These cud either be theories or just floud.Dont just tell wat the pepers say show us…

    Reply

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