By BUUMBA CHIMBULU
ZAMBIA’s annual inflation rate has closed the year at one of the lowest rates ever of 16.4 percent.
The annual rate for December, 2021 decreased to 16.4 per cent from the 19.3 per cent recorded the previous month.
At the beginning of year, inflation stood at 21.5 per cent compared to 12.5 per cent recorded in 2020.
According to Zambia Statistical Agency (ZamStats) interim statistician general Mulenga Musepa, on average prices of goods and services increased by 16.4 per cent between December 2020 and December 2021.
Addressing journalists in Lusaka yesterday, Mr Musepa indicated that the slowdown in the annual inflation was attributed to favourable price movements in both food and non-food items.
He explained that the annual food inflation declined by 5.5 percentage points to 19.9 per cent in December this year compared to 25.4 per cent the previous month.
The decrease was mainly attributed to price movements in food items such as mealie meal, maize grains, Samp, flour, fish, vegetables, coffee and baking powder.
“The annual non-food inflation for December 2021 was recorded at 12.1 percent from 12.2 percent in November 2021.
“The decrease in inflation was mainly attributed to price movements of non-food items such as Glassware, tableware and household utensils (Ceramic ware plate, Glassware (Mug), Cutlery (knifes/Forks), Silver plate, Kettle (non- electrical); Carpet and floor mat,” Mr Musepa said.
He said Lusaka province contributed the highest at 4.6 percentage points to the overall annual inflation rate of 16.4 per cent this month.
Mr Musepa pointed out that Copperbelt province was second highest, contributing 3.8 percentage points while North-Western and Western provinces had the lowest contributions of 0.6 and 0.5 percentage points, respectively.
On international merchandise trade, he indicated that the cumulative total trade for January to November 2021 was K331.0 billion, while that of 2020 for the same period was K215.6 billion representing a 53.6 per cent increase.
Mr Musepa said the total value of exports via all modes of transport for January to November 2021 was K202.2 billion.
Road transport accounted for K113.5 billion representing 56.1 per cent, rail transport was second at K17.7 billion, which was 8.8 per cent.
“Air transport was third accounting for K3.9 billion. Other modes of transport accounted for K67.1 billion which was 33.2 per cent,” he said.
In addition, Mr Musepa indicated that the total value of imports via all modes of transport for the January to November 2021 was K128.8 billion.
He said road transport was the highest at K69.1 billion representing 53.7 per cent share, followed by Air transport at K11.2 billion.
Rail transport was third at K1.4 billion accounting for 1.1 per cent of the total import bill. Other modes of transport accounted for K47.1 billion.
He said the country recorded a trade surplus of K7.2 billion in November 2021 compared to K5.3 billion in October 2021, representing a 34.4 per cent increase.
Exports mainly comprising domestically produced goods, increased by 18.4 per cent to K18.9 billion in November 2021 from K16.0 billion in October 2021.
“This was mainly on account of a 19.4, 17.4, 7.6 and 5.0 percent increase in export earnings from Intermediate goods, Consumer goods; Raw materials and Capital goods, respectively,” Mr Musepa said.
He said imports increased by 10.4 per cent to K11.8 billion in November 2021 from K10.6 billion in October 2021.
This was mainly as a result of a 8.4, 40.1, 10.7 and 5.3 per centincrease in import bills of capital goods, raw materials, intermediate goods and consumer goods, respectively.
