. Kalumbi

By JUDITH NAMUTOWE –
ZAMBIA has recorded a reduction in the annual rate of inflation from 20.2 per cent in July to 19.6 per cent in August 2016.
Central Statistical Office (CSO) director John Kalumbi said the annual rate of inflation as measured by all the items Consumer Price Index  (CPI) for August 2016 decreased to 19.6 per cent.
Of the total annual inflation rate recorded in August 2016, food and non-alcoholic beverage products accounted for 12.4 percentage points, while non-food products accounted for 7.2 percentage points.
Mr Kalumbi said during a media briefing in Lusaka that this meant that on average, prices increased by 19.6 per cent between August 2015 and August 2016.
“The decrease in the annual rate of inflation is mainly attributed to decrease in food prices and to some extent in non-food prices.
“The CPI measures change over time the general level prices of goods and services that households acquire for the purpose of consumption, with reference to the price level in 2009, “Mr Kalumbi said.
He said the annual food inflation rate for August 2016 was recorded at 24.1 per cent compared to 28.8 per cent recorded in July 2016, representing a decrease of 0.7 percentage points.
In terms of provincial contributions, Lusaka Province had the highest contribution of 5.9 percentage points to the overall annual inflation rate of 19.6 percent recorded in August 2016.
“This implies that the price movements in Lusaka  Province had the greatest influence on the overall annual rate of inflation,” he said.
Mr Kalumbi said Copperbelt Province had the second highest provincial contribution of 3.4 percentage Points, while Western Province had the lowest contribution of  0.7 percentage points.
A comparison of retail prices between July 2016 and August 2016 shows that the national average price of a 25 kilogramme bag of breakfast mealie meal increased by 2.0 per cent from K83.25 to K84.99.
The national average price of a  25 kg bag of roller meal increased by 4.34 per cent from K 64.03 to K66,81.
Mr Kalumbi said the national average price of a 20 litre tin of maize grain increased by 1.72 per cent from K34.40 to K34.9.
And Mr Kalumbi said Zambia recorded a trade deficit in July 2016 valued at K473.9 million from K355.4 million recorded in June 2016 representing a 33.3 per cent increase in the trade deficit.