Energy price risks ebb Zambia’s Jan CPI 80points to 12.5%

Consumer Price Index (CPI) in Africa’s copper hotspot widened 80 basis points to 12.5% for the month of January as announced by the Zambia Statistics Agency (ZSA). Key drivers of the rise were energy prices as earlier forecast by the Kwacha Arbitrageur.

Read also: Energy price risks to ebb Jan inflation higher as interest rate risks remain elevated

Zambia grapples with rising energy price risks fueled by a hike on pump prices effected on Boxing Day last year whose effects on consumers was compounded by electricity tariff hike which the energy regulator nodded on ZESCOs application. Other drivers include the cost push effects of currency depreciation in the month that pushed selling prices higher on the back of increased input pricing.

Zambia recorded a trade surplus of K422million for the month of December.

The Kwacha Arbitrageur