Thursday, March 28, 2024

Zambia’s inflation drops to 7.5%, to close the year in single digit

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Zambia has closed 2016 with a 7.5 percent inflation rate in line with the Bank of Zambia’s projection of a single digit inflation rate.

December 2016 has closed at 7.5% from 8.8% recorded in November 2016.

Central Statistical Office (CSO) Director John Kalumbi during the December monthly bulletin release explained that the 7.5 year on year inflation means that on average, prices increased between December 2015 and December 2016.

Mr. Kalumbi noted that the annual food inflation rate stood at 7.8% as at December 2016 from 9.2% recorded in November 2016 while the annual non food inflation rate stood at 7.1% from 8.3% recorded in November 2016.

Mr. Kalumbi has attributed the decrease in the annual food inflation rate to decreases in the inflation for fillet steak, live chicken, imported cooking oil, table salt and dressed chicken.

Mr. Kalumbi said that, of the total 7.5 annual inflation rate, food and non alcoholic beverages products accounted for 4.1% while non food products accounted for 3.4%.

Mr. Kalumbi said that Lusaka province had the highest provincial contribution of 2.2% while Western Province had the lowest contribution of 0.2%.

Meanwhile, the national economy in the first half of 2016 grew by 4 percent with its Gross Domestic Product (GDP) standing at 60.4-billion kwacha.

Mr Kalumbi said the 4 percent is an increase compared to the 3.3 percent the same period last year. Mr Kalumbi added that his office is now able to compute quarterly GDP projections.

Mr Kalumbi said Information Communication Technology which is the fastest growing sector at 40.2 percent is also the highest GDP contributor at 1.2 percent.

He said the ICT growth was mainly as a result of promotional products by the three mobile service providers which saw an increase in data usage and number of minutes for voice calls.

36 COMMENTS

  1. What is meaning of this? The cost of living has risen sharply and the bread basket as increased. An everage family now needs K5000 per month. Are these inflation figures doctored?

    • The figures are not doctored, understand this inflation is the increase in general prices what has reduced is the rate of increase. In the long run the cost of living will “Not be raising sharply”

    • Inflation is when the poor can afford to buy food. When they can’t and start starving then the inflation rate has dropped.

    • I predicted that the inflation rate would reach a single digit figure and there we are! i also predicted by March next year expect the Kwacha to be at K6 to the USD on the back of the increased price of copper which is already on the rise! 2020vision accurate as always and well done to the the PF govt keep working hard- non performers must be sacked!

    • Its unreasonable to think figures are doctored without sitting any evidence. Figures or data don’t lay and as we say the devil is in the details. CSO just like Audit General Office is an institution of integrity which cannot cook up figures. How i wish you could say “yes they are” doctoring the inflation when the rate had hit 22% mid this year. If macroeconomic fundamentals begin to move in the right direction the benefits will be felt by all zambians by way of a stable macroeconomic environment that spurs further economic growth and opportunities and ultimately national development. Get the understanding!

  2. how is that possible? I would imagine one of the major contributors to the inflation basket is the Zambia stable food, mealie meal. The price of which has NOT reduced between November and December

    • Inflation encompases all major commodities cosumers buy in the economy, mealie meal is just one commodity. Reduction in inflation does not mean all prices have reduced, but the rate of increase of prices has reduced, for some yet increased for most of the goods.

    • @ The Real Quest, BOZ as the monetary policy authorities in zambia are suppose to start responding to these fundamentals as well. however it does not happen overnight i anticipate the policy rate of BOZ to reduce in the long run from the current 15.5% to below 10%. this will positively affect the commercial bank interest rates downward movement. Good observation!

    • Only if the inflation was negative can one say well done. What this means is the abnormally high prices experienced last year have not returned to their normal prices. Unaffordability is the new normal.

    • @ The Economist

      Can you please enlighten us on the goods and services which form base of CPI? Can you help by explaining difference between monthly rate of inflation and yearly inflation? Lastly, why CSO never publish yearly inflation figures?

      Do you REALLY think that 7.5% monthly inflation is a sign of success? What is the annual percentage 90%, 120% , 150%?

  3. Lies, pure lies! Inflation is the pocket, and right now they are quite shallow. One can’t make the proverbial ends of the months meet. 7.5% is just for politicking purposes, to brag that they have things in control….lies, pure lies I tell you.

    • Understanding of how inflation is calculated will help you make informed decision. in a nutshell inflation is simply the change in consumer price index (CPI), on monthly basis. This is verified data with CSO, you don’t have to be an Economist, a Mathematician or a statistician to figure out. How i wish you could say it was “politicking purposes” when the inflation rate had hit 22% mid this year. CSO is an institution of integrity which cannot cook up figures.

    • @6 take time to read these statements and try to understand. Just because your pocket is not good should not blind your thinking. These are statistics which if they are not affecting you today, assuming you are hard working and do wait for the goverment to put bread on your table, will affect sooner that later.

  4. UPND minions have been silenced, on this subject, well done “The Economist”were is Jay gay, Nostradamus, Fota Nkonde, Obatala, Nostradamus, Mark Sido, Hilda Malama, Rizzo, mwe bantu, IQ138, The Mentalist, james buga, Napapa Sana, loadist, Men In Black, Lucy, Careless Whisper, Ndobo, A Phiri ana bwe.., Planzo, Dudelove, Chils, Fighter, finite, and other well-known UPND, fully paid bloggers.

    • iwe 7.1 you are obsessed with nez ayi? just vote me as best blogger. the writing is on the wall

    • The “Democrete” who cannot spell correctly has become expert. Jack-ass, even certified 1mbeciles have realized that cost of living has reached unbearable stage and yet, you are consoling yourself with statistical data? Do you know which goods and services form base of this archaic calculations?

  5. This is the joke of the year. We all know that the only commodity whose price has gone down is beer by Zambian breweries (Vima chwagwa in 10 zmw). Who can go and fill up a trolley today in shop-rite and pay less than 1500 zmw. Gullible indeed and you think the IMF will be impressed with this nonsense.

  6. This is a serious breach of intelligence. .are we so damn to swallow these wishful findings..is our economy based on IT and Food imputs? ..hehehe

    • So what is your economy based on? There are figures all over and all you can see is IT and Food? I am sure you were looking for copper but wait.I will wait to hear from the most intelligent zambia, leader of a tribal bitter party to comment on the issue before I can gauge some people.

  7. meanwhile the cost of living has skyrocketed such that mushota’s relatives cannot even afford to send her a ticket to visit. Mushota is living a life of econmic refugee in scotland

  8. So cooking oil is still being imported?? I thought there is a ban on the importation of cooking oil into Zambia!
    May i be educated on this one.

  9. Some positives. Someone may not be happy,but who cares.Well done PF,and keep going.The internal squabbles are distractions..Our God is on the throne.In His own season and time,He perfects things for His own.

  10. Can we please have a reduction in bank lending interest rates. 40% interest to borrow money is slavery. Who makes 40% mark up on their sales in this country. Sometimes these banks should learn to think properly. Given that there is a tender to supply goods or services, SMEs will factor in the price the cost of borrowing and then add profit and other indirect costs. Do you wonder why the cost of services and goods in this country is so high? If you reduce the cost of borrowing you will reduce the cost of providing these services and goods. And every makes a lot of noise on costs but forgetting the real culprit who is the lending institution. Why does BOZ keep the cost of borrowing so high if I may ask? Please help me understand.

  11. Kalumbi Banda looked like a comedian when presenting his inflation figure. What ever it is the cost of living is killing us.

  12. Bufi, Boza, Bubela , Kubeja. This is not news at all. Uumfwa umucele ukufina untu ausendele. Bane ba PF bombeni fye muwamye economy not ukulashinga abantu butter.

  13. This is rubbish. Even a company that stops production of a certain good causes its demand to rise but does not exponentially mean the company will make money. Central bank has just restricted how much kwacha is available on the market, but does not mean the kwacha has strengthened against major currencies. These are just statistics

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