Zambia’s inflation rate for this month had dropped by 0.3 percentage points to 6.6 per cent from 6.9 per cent in February 2013, while the trade surplus stands at KR133.2 million.
Central Statistical Office (CSO) director John Kalumbi said the annual rate of inflation as measured by the all-items Consumer Price Index (CPI) had declined mainly due to decrease in some food prices Addressing journalists in Lusaka yesterday, Mr Kalumbi said of the total 6.6 per cent of the annual inflation rate in March, food products accounted for 3.1 percentage points, while non-food products accounted for a total of 3.5 percentage points.
On the provincial contributions, Mr Kalumbi said Lusaka made the largest provincial contribution of one point eight percentage points to the overall annual inflation rate of 6.6 per cent recorded in 2013, followed by Copperbelt which added one point seven percentage points.
North –western and Luapula provinces had the lowest contribution of zero point two percentage points each.
A comparison of retail prices between February and March 2013, indicates that the national average price of 25 kg bag of breakfast mealie meal increased by two point five per cent from KR54.41 to KR55.77.
Commenting on the international merchandise trade, Mr Kalumbi said Zambia recorded a trade surplus valued at KR133.2 million in February from KR192.8 million in January 2013.
Mr Kalumbi said this means that the country exported more in February 2013 than it imported, in norminal terms.
Zambia’s major export products in February 2013 were intermediate goods category mainly comprising copper cathodes and sections of refined copper accounting for 74.6 per cent.
Others exports were from the consumer goods, raw materials and capital goods categories which collectively accounted for 25.4 per cent of the total exports in February 2013.
This implies that in February and January 2013, the country has been a net exporter of intermediate goods, mainly metals and their articles, accounting for an average of 75.8 per cent of the total exports.
How is this possible when mealie meal in Northwestern is costing in the range if K80 to K120. These are bogus inflation figures.
it is very possible when you knock out the three zero’s a 5000 becomes 5 you expect the inflation to be reduced.
@Kokoliko, rebasement of a currency does not imply a drop in inflation. In fact it can cause a rise in inflation in the short run. Do some research on this and find out.
@Goncalves:
These are not bogus numbers if you read the article carefully. Yes, North Western did contribute to the inflation albeit at a lower rate. And I am assuming this is because of the fact that North Western province also produces a lot of copper but with a smaller population (per capita factor) compared to say Copperbelt province for Meali meal prices to have any effect. As you can see in the article, it is a different story in the Copperbelt despite the enormous copper production there.
Mind you, this is “the annual rate of inflation as measured by the all-items Consumer Price Index (CPI).” This means a hodgepodge of goods/items averaged together. I am not an economist, but I think that’s how CPI works!
While the CSO tells us about the copper exports, can you also itemize the 25.4% other materials that Zambia exported during the period under review?
@Yambayamba, all items CPI? What is this ? Inflation is calculated only on a selected number of consumer goods that are used by the majority of consumers. That is why mealie meal has a lot of weighting in Zambia’s CPI.
I find it very difficult to believe this especially when the price of basic commodities have gone up. The price of the food basket is up, but inflation has dropped? I doubt this statistics!
cso dishes out dumb data. how can inflation drop ehen the exchange rates are out of the wack the lending rates are high consumer prices are high
Lies. Why is food more expensive now than ever?
Don’t just shout, lies, give us your facts
Some of us do not understand economics, all we know is that when inflation drops , its a good sign to the nation. why do you think the CSO whould want to give us wrong figures. Economists please teach us.
CPI means all prices not just mealie meal. Zambians will not develop if they fail to get over their love for Nshima!
CPI is not calculated on ALL. It is calculated on a few selected consumer items mainly weighted around food products.
Iwe cikala tawaishiba ati many Zambians if not all basumukila ubwali
Well said. If Zambians could eat more than Nshima today, hunger would be cut in half.
More PF lies! Do these people actually believe the nonsense they speak?
Anyone that goes to a shop today will tel you this is rubbish!
Like I said, until you get over your obsession with Nshima, you cannot read economic news objectively. What does the government have to do with prices of goods?
Its your bothers and sisters working at CSO who have worked out these figures. PF has nothing to do with this. So you better direct your insults at uncles and brothers working for CSO
People please; I do realize a lot of us on these blogs have very scanty understanding of some of these issues— myself included! But the price of UBUNGA has little effect on the overall inflation rate if our main export commodity, such as copper, outstrips the effects of price increases in consumer goods. Nonetheless, if we take out high copper prices and other economic engines of Zambia, inflation will certainly not be at 6.6%.
Please read the article again; this is “the annual rate of inflation as measured by the all-items [emphasis: ”all-items”] Consumer Price Index (CPI),” which means it includes everything, not just consumer goods!
The price of copper has nothing to do with CPI. Copper is not consumed in Zambia. The CPI in Zambia is weighted mostly on the food basket. Copper can go upto $20 000 per tonne but it will have no effect on the price of mealie meal.
@Goncalves, hey you may be right. I am always open to new knowledge. Like @Mushota, there are just too many “double meanings” in some of these disciplines, I get confused. That is why I ended up in engineering.
Inflation and Interest rates confuse me at times!
Thanks
Not at Times, they confuse you always. And they will to do so.
You always do well when you avoid rumbling.
Those two confuses me too!
A chartered accountant who is in PHD confused by inflation!
This CPI measurement is somewhat deceiving and it does not accurately reflect the true status of the entire country’s households. I wonder if prices in rural areas such as kwana Bwalya in Kasama were considered in the formulation of this ridiculous consumer price index measurement. Zambia is such a diverse country with substantial differences in income, geographical location and lifestyles. The average household, as contained in the CPI weight, does not reflect any specific household. If we examine major expenditure is every household such as education, fuel, energy medical insurance and groceries, this CPI is certainly a mockery.
This CPI measurement is somewhat deceiving and it does not accurately reflect the true status of the entire country’s households. I wonder if prices in rural areas such as kwana Bwalya in Kasama were considered in the formulation of this ridiculous consumer price index measurement. Zambia is such a diverse country with substantial differences in income, geographical location and lifestyles. The average household, as contained in the CPI weight, does not reflect any specific household. If we examine major expenditure in every household such as education, fuel, energy medical insurance and groceries, this CPI is certainly a mockery.
@Goncalves, I like your points but disagree with you to a certain degree. Consumption doesn’t mean literary in your sense I hope. Yes of course copper is consumed all round the world in building and other industries. I presume your message was electronically transferred over some copper wire and I sincerely hope that the copper used in your gadget was sourced from Zambia and you are the benefactor and consumer of the same. Oh yes indeed! the price of copper has everything to do with the price of mealie meal. Ask yourself this question, who regulates the price of mealie meal? Government. If our government didn’t get such a raw deal from the sell of our copper, we would have been very rich people in our country – God bless Zambia – but that is a topic for another day.
@Goncalves, I like your points but disagree with you to a certain degree. Consumption doesn’t mean literary in your sense I hope. Yes of course copper is consumed all round the world in building and other industries. I presume your message was electronically transferred over some copper wire and I sincerely hope that the copper used in your gadget was sourced from Zambia and you are the benefactor and consumer of the same. Oh yes indeed! the price of copper has everything to do with the price of mealie meal. Ask yourself this question, who regulates the price of mealie meal? Government. If our government didn’t get such a raw deal from the sell of our copper, we would have been very rich people in our country – God bless Zambia – but that is a topic for another day.
No 9 you are actually confused at everything else pushi.
How can this happen when food prices are increasing and the kwacha is loosing value everyday
@Goncalves, I like your points but disagree with you to a certain degree. Consumption doesn’t mean literary in your sense I hope. Yes of course copper is consumed all round the world in building and other industries. I presume your message was electronically transferred over some copper wire and I sincerely hope that the copper used in your gadget was sourced from Zambia and you are the benefactor and consumer of the same. Oh yes indeed! the price of copper has everything to do with the price of mealie meal. Ask yourself this question, who regulates the price of mealie meal? Government. If our government didn’t get such a raw deal from the sell of our copper, we would have been very rich people in our country – God bless Zambia – but that is a topic for another day.
I am likely to ridicule this bloger called Mushota who first posed as an ACCA, CIMA and what have you but now on this article she confesses of lack of understanding these Accounting terminologies of inflation and interest rates. What then did she learn in her claimed Accounts papers?
dose it mean even in Zambia the CPI is only determined by urban consumer data? And some people above are claiming that the CPI is calculated on selected items. How do you substantiate your postings?
Bob schinga and sata calculated this that’s why.
Its ukwanomics at work.
Very good. Nice to see various inputs and concerns.
just no sense…… You can fool some people sometimes, but you can fool all the all the times. we all know what time it is…….