Zambia’s inflation was at 6.4 percent year-on-year in January, the Central Statistics Office said on Thursday after a rebasing of the consumer price basket that made comparisons to previous months nearly impossible.
The CSO rebased the inflation basket to 2009. Inflation was at 7.2 percent year-on-year in December under the previous calculations.
The process of revising the CPI basket started before the elections in September last year, it said.
Analysts said inflation might edge up when the rebasing of the currency comes into effect in the next six months.
The government plans to lop off three zeros from the kwacha, which would make it 5.09 to the dollar, using Thursday’s exchange rate of 5,090.
“The danger to inflation lies on … initial price pressures that may come with Kwacha rebasing,” said Chibamba Kanyama, a member of the local think-tank, Economics Association of Zambia.
“We expect price increases by traders taking advantage of ignorance on deflated prices.”
The statistics agency also said the surplus on the trade account narrowed to 132.5 billion Kwacha in December from 194 billion Kwacha in November.
[Reuters]
What has changed. who you trying to fool. when poverty levels are upswing. We got rid of RB lets now pick an intellectual not a debased president that fights with chiefs using devide and rule tactics and intimidation. Eastern province is watching you . Let mpezeni give you all the votes
There will now be an ‘official’ inflation figure and another that you and me will know to be true because CSO has decided to go to the dogs and now reports cooked up figures. Its very sad considering CSO has always been professional, now this?
This is interesting, why go back three years to 2009 to calculate the year-on-year inflation. I am no economist, but there may be need to do some explaining here by the CSO, otherwise this seems arbitrary. Where to now?
Good move, CSO. The rebasing of the inflation figures is meant to reflect the current consumption patterns. The old series was based on the consumption patterns as reflected in 1994. This meant there were no such things as mobile phones in the consumption basket. CSO periodically carries out the household budget survey which is meant to update the consumption basket. The new CPI has increased number of products to take into account the current consumption patterns; it also has increased geographical coverage (the previous CPI was urban biased, while the new one increased the number of districts and retail outlets covered). Additionally, CSO has decided to adopt international best practicves by adopting the geometric mean of price relatives rather than the previously used arithmetic mean.
Cheers man! You seem to know what you are talking about. I have learnt something new from you. God bless you.
Not a LOWyer
I understand you’re no Economist, there’s what is called “BASE YEAR” price, an expression used in Economics to arrive at such statistics.
For some time, we as users have been complaining about the unreliability of the inflation figures. The rebasing means CSO has listened to our cries and responded accordingly. Since there are releasing the figures now and the base year is 2009, my guess is they have been running this series since 2010. For you to have 2011 numbers, you need to compare the figures to the previous year, 2010. Remember people that what is quoted is year-on-year inflation, so it is only prudent that you run the series for a full year before you make comparisons.
What CSO needs to do is to explain what they have done thoroughly, what the new mix of products is, if they have adopted internationally accepted product classifications and what the product specifications are.
Otherwise, good work CSO!
ILLUSION – UTOPIA.
the last time I heard it was $1 per person pa zed, so is it now $2? If not then just shut up please
IM GOING TO ALSO REBASE MY FAMILY MEALS – TWO LUMPS OF NSHIMA WITH TWO PIECES OF CHICKEN (WITH VEGETABLES) WILL NOW CHANGE TO ONE LUMP WITH ONE PIECE CHICKEN. IF THEY ASK THE REDUCTION IN POSSIONS? I WILL SIMPLY SAY IM REBASE MY HOUSEHOLD MEALS – NOTHING CHANGED BUT I HAVE JUST DROPPED OF A LUMP AND ONE PIECE. THE DROPPED ONE CAN JUST BE IMAGINED EACH TIME YOUR EATING. ITS THERE EVEN IF U CANT SEE IT. ONE LUMP AND ONE PIECE ARE EASY TO CARRY.
LOLEST. Cracked my ribs!
JFK, thanks. Curios though how the PF are now accepting these same figures that they used to lambaste at some point in the near past. Times do indeed change.Â
No. People change, not time.
fundanga is very intelligent a man, now you decide to replace him with mpezen who only thinks of knocking out zeros from the kwacha and calls it development. note; production= development.
am not an economist please, may economists help me understand how production would knock out the notorious zeros on our currency without debasing it?
This question is honestly asked without any political agenda to it please help.
So inflation figures are now acceptable when barely four months ago we said that we will not eat low inflation or high GDP growth?