Inflation in Africa’s second largest copper hotspot quickened by 30 percentage points to 16% fuelled by rising food prices, key drivers being meat products. The food component of the Consumer Price Index -CSI accounted for 49.4% (7.9%) while non food absorbed the remaining (50.6%) 8.1% of the 16.0% reported by the Zambia Statistics Agency – ZSA. Month on Month (MoM) inflation for the October period slowed to 1.3% from 1.4% while food inflation accelerated to 1.6% from 0.6% as maize and meat prices widened. Non food inflation ebbed lower to 0.9% from 2.3% driven by rising vehicle prices as currency weakness weighed.
Zambia’s inflation rate has been on an increasing trajectory, over the last few months after hitting a peak of 16.6% in May, however falling food prices ealier slowed CPI to 15.5% after which currency weakness related cost push pressures have started to drive inflation higher.
Trade surplus for September widened by a 33% margin to K7.1billion supported by higher refined copper exports that grew by 21% to K12.7billion. Zambias Non Traditional Exports – NTEs climbed a 14.1% to K3.9billion with key drivers being raw unprocessed cane, portland cement and electricity.
Imports edged 10.8% to K9.6billion according to the October ZSA bulletin.
The Kwacha Arbitrageur