Editor's PickZM Index

Zambia records K2.3 billion trade surplus, as inflation rate climbs to 10.8%


Zambia’s annual inflation rate has increased to 10.8 percent in August due to price movements of selected food and non-food items.

This is as the country recorded K2.3 billion trade surplus.

The annual inflation for August 2023, increased to 10.8 percent from 10.3 percent recorded in July 2023, Zambia Statistical Agency (ZamStats) Statistician General, Mulenga Musepa, said.

Read more: Inflation rate rises 10.3%, as Zambia records K.9 billion trade surplus (See other economic indices)

This means that on average, prices of goods and services increased by 10.8 percent between August 2022 and August 2023.

Addressing journalists in Lusaka on Thursday, Musepa indicated that annual food inflation for August, 2023 was recorded at 12.6 percent compared to 12.1 percent the previous month.

He said this meant on average prices of food items increased by 12.6 percent between August 2022 and August 2023.

Musepa said the outturn was mainly attributed to price movements in cereals, meat, fish, milk, Cheese and eggs.

He said annual non-food inflation for August was recorded at 8.5 percent compared to 7.8 percent.

This development was mainly attributed to increases in prices of non-food items such spare parts and accessories, fuel and lubricants and charcoal.

He said that of the overall 10.8 percent annual inflation, food and non-alcoholic beverages group contributed 7.2 percentage points, while non-food items accounted for 3.6 percentage points.

“Of the 3.6 percentage points, housing, water, electricity, gas and other fuels and transport contributed the highest at 1.0 percentage points followed by clothing and footwear, furniture, household equipment and routine household maintenance at 0.6 and 0.5 percentage points, respectively,” Musepa said.

He added that the rest of the non-food group accounted for the remaining 0.5 percentage points.

Musepa indicated that Lusaka province contributed the highest at 3.6 percentage points to the overall annual inflation of 10.8 percent in August 2023.

Copperbelt was at 2.0 percentage points, while Central and Eastern province contributed 1.1 percentage points each.

He said North-western province had the lowest contribution of 0.3 percentage points.

On trade, Musepa indicated that cumulative total trade for the period January to July 2023 was K233.1 billion, while that of 2022 for the same period was 206.0 billion, representing a 12.6 percent increase.

“The total volume of exports via all modes for the period January to July 2023 was K119.4 billion. Road transport accounted for highest K58.1 billion representing 48.6 percent share.

“Rail transport was second at K4.8 billion and air transport was third accounting for K2.9 billion, while other modes accounted for K53.6 billion,” he said.

The total value of imports via all modes of transport for the period January to July 2023 was K113.7 billion.

Musepa said road transport was the highest at K65.6 billion representing 57.8 percent share, followed by Air transport at K5.4 billion (4.9 percent).

He said rail transport was third at K2.1 billion accounting for 1.9 percent of the total import bill.

Other modes of transport, he said, accounted for K40.4 billion.

In terms of volumes, Musepa said a total of 4,117.6 million tonnes of imports was recorded for the period January to July 2023, of which road transport accounted for 2,506.9 million tonnes, representing the highest share at 60.8 percent.

Musepa said railway transport accounted for 172.5 thousand tonnes, representing a share of 4.2 percent in the period under review.

He added that Zambia recorded a trade surplus of K2.3 billion in July 2023 compared to a surplus of K0.9 billion in June 2023.

Exports mainly comprising domestically produced goods, increased by 5.0 percent to K17.5 billion in July 2023 from K16.5 billion in June 2023, Musepa noted.

This was mainly on account of 5.0 and 40.8 percent increases in export earnings from Intermediate goods and Capital goods, respectively.

He said imports decreased by 3.8 percent to K15.1 billion in July 2023, from K15.7 billion in June 2023, and that this was mainly as a result of 6.9, 0.5, 8.4 and 0.4 percent decreases in import bills of raw materials, Intermediate goods, consumer goods and capital goods, respectively.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.

Police detain man over death of female student of Levy Mwanawasa Medical Universit

Previous article

USAID official harps on future risks, says Zambia produces charcoal to fill up 300 shipping containers daily

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *