Zambia’s Inflation Down to 9.8% in August 2022

Zambia Invest, September 1, 2023

Zambia’s Annual inflation for August 2022 decreased to 9.8% from 9.9% recorded in July 2022. This means that on average, prices of goods and services increased by 9.8% between August 2021 and August 2022.

Annual Food and Non-Food Inflation

Annual food inflation for August 2022 was recorded at 11.3% from 12.0% in July 2022.

This development was mainly attributed to price movements in food items such as meats (brisket, mixed cut, t-bone, beef sausages, mince meat, ox-liver, chicken live); fruits (oranges, lemons, bananas, apples, watermelons, pineapples, avocadoes), rice local and eggs.

The annual non-food inflation for August 2022 was recorded at 7.8% from 7.2% in July 2022. This outturn was mainly on account of price movements in non-food items due to the base effect in Transport.

Annual Inflation Rate by CPI Main Groups

The Annual Inflation Rate in August 2022 increased for:

Transport: the CPI for the Transport main group increased by 13.6% between August 2021 and August 2022. This was higher than the 7.3% in the same month of 2021 and 4.3% recorded in July 2022.

Communication: the CPI for the Communication main group increased by 2.1% between August 2021 and August 2022. This was lower than 3.8% in the same month of 2021 but above 1.9% recorded in July 2022.

The Annual Rate of Inflation for August 2022 decreased for:

Food and Non-alcoholic Beverages: the index for the Food and Non-alcoholic beverages main group increased by 11.3% between August 2021 and August 2022. This was lower than 31.6% in the same month of 2021 as well as the 12.0% recorded in July 2022.

Alcoholic Beverages and Tobacco: the index for the Alcoholic Beverages and Tobacco main group increased by 7.0% between August 2021 and August 2022. This was lower than the 13.3% in the same month of 2021 and 8.1% recorded in July 2022.

Clothing and Footwear: the CPI for Clothing and Footwear increased by 9.1% between August 2021 and August. This was lower than 16.1% in the same month of 2021 and 11.5% recorded in July 2022.

Housing, Water, Electricity, Gas, & Other Fuels: the CPI for the Housing, Water, Electricity, Gas & Other Fuels group increased by 5.4% between August 2021 and August 2022. This was lower than the 22.7% recorded in the same month of 2021 as well as 6.2% recorded in July 2022.

Furnishing, Household Equipment and Household Maintenance: the CPI for the Furnishing, Household Equipment and Household Maintenance main group increased by 6.0% between August 2021 and August 2022. This was lower than 21.2% recorded in the same month of 2021 and below 7.1% recorded in July 2022.

Health: the index for the Health main group increased by 4.8% between August 2021 and August. This was lower than 12.3% in the same month of 2021 as well as 5.1% recorded in July 2022.

Recreation and Culture: the CPI for the Recreation and Culture main group increased by 12.3% between August 2021 and August 2022. This was lower than the 15.9% in the same month of 2021 and 13.7% recorded in July 2022.

Restaurant & Hotel: the index for the Restaurant & Hotel main group increased by 6.8% between August 2021 and August 2022. This was lower than the 14.1% in the same month of 2021 as well as the 8.0% recorded in July 2022.

Miscellaneous Goods and Services: the CPI for the Miscellaneous Goods and Services main group increased by 8.8% between August 2021 and August 2022. This was lower than 15.4% in the same month of 2021 and below the 9.9% recorded in July 2022.

The Annual Rate of Inflation for July 2022 remained the same for:
Education: the CPI for the Education main group increased by 2.3% between August 2021 and August. This was lower than 5.6% in the same month of 2021 and the same as that recorded in July 2022.

Contribution of CPI Main Groups to Overall Inflation Rate of 9.8%

Of the overall 9.8% annual inflation, Food and Non-alcoholic beverages group contributed 6.4% points, while Non-food items accounted for 3.4% points.

Of the 3.4% points, Transport contributed the highest at 0.9% points, followed by Clothing and footwear& Housing, water, electricity, gas and other fuels at 0.7% points each; Furnishing Household Clothing and footwear equipment and routine household maintenance groups contributed 0.4% points. The rest of the Non-Food group accounted for the remaining 0.7% points.

August 2022 Overall Monthly Inflation

Overall monthly inflation for August 2022 was recorded at 0.3% compared with 0.4% the previous month. This outturn was mainly attributed to price decreases in some non-food items. Monthly food inflation for August 2022 was 0.4%, an increase of 0.1% points from 0.3% in July 2022. This development was mainly attributed to the general decrease in prices of items such as Vegetables (Rape, .Sweet potato leaves, lumanda, Cabbage, Tomatoes), Dried bream. Monthly non-food inflation for August 2022 was recorded at 0.1% from 0.7% in July 2022. This outturn was mainly attributed to a slow down in price increases of non-food items such as Fuels & lubricants (Diesel, Petrol, Engine oil) and; Passenger transport by road (Minibus fare, Coach fare).
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