Inflation rises to 9.9% on the back of high costs of fuel, lubricants

Zambia’s annual inflation rate for this month has been pushed upwards by high cost of fuel and lubricants, closing the year at 9.9 percent.

An increase in non-food items such as fuels and lubricants have pushed the December annual inflation rate to 9.9 percent, an increment of 0.1 percent when compared to last month.

The country has therefore closed this year with an annual inflation rate of 9.9 percent as compared to the 15.1 percent it started the year with in January.

On a monthly basis, the annual inflation rate for December hit 9.9 percent from 9.8 percent recorded in November last month.

This is due to the increase in annual inflation rate to the rising of non-food inflation rate such as fuels and lubricants as well as purchase of motor cars, according to Zambia Statistics Agency (ZamStats) Interim Statistician, General Mulenga Musepa.

Musepa told the media in Lusaka on Thursday that annual non-food inflation rose to 7.3 percent from 6.7 percent in November 2022.

“As we all know, non-food items have been pushing up the last few months. This means that on average, prices of goods and services increased by 9.9 percent between December 2021 and December 2022. This development was mainly attributed to movements in prices of non-food items.

“Annual non-food inflation increased to 7.3 percent from 6.7 percent in November 2022. fuels and lubricants (Diesel, Petrol, Lubricants (brake fluids) and Purchase of Motor cars (Toyota Hilux, Nissan ALMERA 1.5, Nissan Hardbody,” he said.

Meanwhile, Musepa indicated that cumulative total trade decreased by 3.5 percent in November 2022 compared to November 2021.

He explained that the cumulative total trade for the period January to November 2022 was K319.9 billion while that of 2021 for the same period was K331.6 billion, representing a 3.5 percent decrease.

On export volume shares between January and November 2022, he explained that road had the highest volume share at 58.0 percent at 5.0 million metric tonnes, followed by rail at 0.5 percent at 46.2 thousand tonnes.

“The total value of exports via all modes of transport for the period January to November 2022 was K182.4 billion.
“Road transport accounted for the highest at K91.2 billion representing 50.0 percent share. Rail transport was second at K3.5 billion and Air transport was third accounting for K2.6 billion. Other modes of transport accounted for K85.1 billion,” he said.

Musepa on import volume shares said: “road had the highest share at 59.0 percent (3.2 million metric tonnes); while rail had 3.6 percent (192.5 thousand metric tonnes).”

He also said Zambia recorded a trade surplus of K2.8 billion during the month of November 2022.
“Exports increased by 6.8 percent, while imports increased by 8.9 percent,” Musepa said.