Consumer price index in Africa’s red metal hotspot Zambia, ebbed 20bps to 10.7% for the month of October. This was announced by the Zambia Statistics Agency Central (ZSA) in the capital Lusaka. Drivers of the October headline readings was an uptick in food prices.
The ZSA publication reported an increase in annual food inflation rate of 13.3% from 12.4% representing a 0.9% move upwards while annual non food inflation eased 0.5% to 7.8% compared to September’s 8.3%.
Zambia’s trade deficit for September widened 61.7% to K730.7 million from K451.9 million in August in nominal terms.
Risks to inflation remain high as currency pressure mounts given increased demand for dollars to fund the energy (petroleum/electricity) and agriculture sectors. Medium term outlook for inflations remains between 12%-15%.
The Kwacha Arbitrageur
