Zambia’s inflation rises to 8.4 %
By CYNTHIA MWALE
ZAMBIA’S annual inflation rate has increased to 8.4 percent in July from 7.8 percent in June due to increases in both food and non-food products amid the country’s steady trade surplus which now stands at K4.5 trillion.And the gross domestic product (GDP) by type of expenditure was valued at K61.6 trillion in 2009.
GDP type expenditure measures the expenditures on final consumption, gross capital formation and net exports.
Central Statistical Office (CSO) acting director of census and statistics John Kalumbi announced this at the monthly media briefing in Lusaka yesterday.
Mr Kalumbi said the 8.4 percent annual inflation this month, which represents a one percent increase, comprises a 6.4 percent for non-food while 2.0 percent is for food products in the Consumer Price Index (CPI).
During the period under review, annual inflation rates increased for food, beverages and tobacco; clothing and footwear; household fuel and lighting, and furniture and household goods.
Others were transport and communication and other goods and services. However, annual inflation rate reduced for medical care, recreation and education.
He said national average prices of generally all products increased except for mealie meal; roller and breakfast, maize grain, cabbage and rape.
On the balance of trade, Mr Kalumbi said Zambia recorded a trade surplus amounting to K493.6 billion in June. The trade balance stands at K4.5 trillion from January to June.
Zambia’s major exports in June were from the intermediate goods category, mainly copper cathodes and a section of refined copper and copper blister, accounting for 77.6 percent. Raw materials accounted for 13 percent and consumer and capital goods collectively accounted for 9.4 percent.
Mr Kalumbi, however, said there has been a reduction in the total value of exports between June and May with the country’s ever dominant metal product registering a lower value in revenue growth of negative 18.2 percent.
The overall contribution of metal products to the total export earnings was 76.6 and 80.4 percent in June and may respectively.
Major export destinations were Switzerland (39.9 percent), China (27.1 percent) and South Africa (11.8 percent).The United Arab Emirates and Democratic Republic of Congo accounted for 6.0 and 4.8 percent respectively.
Meanwhile, Mr Kalumbi said the discrepancy between the total GDP at market price was K61.6 trillion (expenditure) compared to that of production at K64.6 trillion, representing a 4.6 percent difference.
/MISA%20promoting%20media%20diversity%20_%20pluralism%20_%20self-sufficiency%20_%20independence_files/spacer.gif){kind=spacer}
