Zambia’s July Inflation flat at 9%

THE annual inflation rate for this month has remained unchanged at nine percent.

Zambia has recorded another trade surplus valued at K527.3 billion in June 2011, representing a nominal decrease of about 33.7 percent from K795.6 billion recorded in May 2011.

Central Statistical Office (CSO) acting director John Kalumbi speaking at the monthly briefing in Lusaka yesterday said of the nine percent, food products accounted for 2.8 percent while non-food products in the consumer price index accounted for 6.2 percent.

Mr Kalumbi said the annual inflation rates reduced for clothing, footwear, household fuel, lighting, transport, communication, other goods and services.

A comparison of retail prices between June 2011 and July 2011 shows that the national average price of a 25 kilogramme bag of white breakfast mealie meal reduced by 1.1 percent from K48,522 to K47,987.

The average price of 25kg bag of white roller mealie meal has also reduced by 1.5 percent from K34, 054 to K33, 536.

Mr Kalumbi said the national average price of one kg of tomatoes increased by 5.1 percent from K4,273 to K4,492 while one kg of rape vegetable increased by 14.3 percent, from K2,510 to K2,870.

The CSO also noted price increases in dried Kapenta and dried fish.

Meanwhile, Zambia has continued to record a trade surplus.

“The country exported more in June 2011 than it imported…the country has had monthly trade surplus since January 2011 with the highest valued at K1,484.3 billion recorded in January 2011 and the lowest in June 2011, valued at K527.3 billion,” he said.

Mr Kalumbi said major export products in June 2011 were from intermediate goods mainly copper cathodes and sections of refined copper accounting for about 82.5 percent.

Other exports were consumer and capital goods which collectively accounted for about 17.5 percent of total exports in June 2011.

He said Zambia’s major export destination in June 2011 was Switzerland, which accounted for 52.4 percent, followed by China, South Africa, Democratic Republic of Congo and Zimbabwe.

The five countries collectively accounted for 85.7 percent of Zambia’s total export earnings in June 2011.

Mr Kalumbi said the Southern Africa Development Community (SADC) accounted for the largest market for Zambia’s exports at 22.3 percent, followed by Asia, 16.9 percent, the Common Market for Eastern and Southern Africa (COMESA) 9.8 percent and the European Union (EU) at 3.7 percent.

He said Zambia’s major import source in June 2011 was South Africa, accounting for 34.2 percent, followed by DRC 20 percent, China 12.3 percent, United Kingdom 3.9 percent and India 3.7 percent.

He said SADC accounted for the country’s largest sources of imports at 57.7 percent, followed by Asia 27 percent, COMESA 23.3 percent and EU at 11.1 percent.

[Zambia Daily Mail]