Reuters reports that Zambia’s inflation quickened year-on-year in March, pushed up by higher food prices, while the economy grew slightly more in 2011 than earlier estimated, the Central Statistics Office said on Thursday.
The year-on-year rise in the consumer price index in Africa’s biggest copper producer accelerated to 6.4 percent from February’s 6.0 percent – its lowest rate in at least 10 years – mainly due to the rising cost of food, the heaviest weighting in the inflation basket.
A Reuters poll last week showed Zambia’s inflation should stay in single digits and average 7.2 percent this year.
However, analysts said weakness in the kwacha currency since the election in September of populist opposition leader Michael Sata posed a threat to that relative price stability.
The kwacha, which hovered around the 4,700 to the dollar level for much of 2011, has lost around 6 percent since Sata’s election victory in September amid fears his administration will make life harder for foreign investors.
It was trading at 5,270 on Thursday.
“There will be a lot of pressure on inflation in the coming months arising from a weaker kwacha, higher oil prices and wage demands,” said Joseph Chikolwa of the Economics Association of Zambia, a Lusaka-based think-tank.
“Still, I don’t think we will see double digits because food inflation will be moderated by the new maize harvest.”
The central bank is due to announce an inaugural benchmark interest rate later on Thursday, a move analysts said should help steer the economy towards price stability.
The CSO also increased the southern African country’s growth estimate to 6.6 percent from the 6.5 percent earlier stated, compared with 7.6 percent expansion in 2010. Growth was mainly driven by the construction sector.
Earlier this month, the International Monetary Fund forecast higher economic expansion of 7.7 percent for Zambia this year due to strong growth in copper production and non-maize agriculture.
[Reuters]
I have a feeling I am going to enjoy the next few comments. Please no insults and no name calling such as Ukwa etc.
Ukwanomics says price elesticity does not exist. Central control of the economy creates jobs. Thats Bull… Actually inflation is hovering at 17%. The PF cadre at central statistics has been too modest.
Wonder where these PF cadres at central statistics collect data, because prices started shooting on the 21st of september and they have never stipped.
Dont u worries Reuters. By June this year $1 will be equal to K5 when we get rid-off the three zeros… watch the space.
”However, analysts said weakness in the kwacha currency since the election in September of populist opposition leader Michael Sata posed a threat to that relative price stability…………” There is nothing more to add.
This is interesting.Inflation up by 40 basis points within month(February to March). With no bumper harvest, food inflation will take its toll.
How I miss Mr. Rupiah Bwezani Banda and his intelligent ministers like Musokotwane Situmbeko, Mutati etc.
Dr Caleb Fundanga
illuminati agenda is to bring order out of chaos ”ardo ab cao”.watch this space.
This is so good to the ear! I just pit the Reuters Journalist that picked this issue up! Reuters has joined the list of international agencies that are against our PF government!!!! Am giving this story a few more minutes before one clown in the form of either ALEX, BOB OR MICHAEL makes my wish come true.
Things will improve with time. Foreign investors are slowly gaining confidence in the current government…Â
But this doesn’ matter because us kaponyas were told that ‘you cant eat inflation’ when the inflation rate was going down under the leadership of RB. This is not going to make any difference to us whatsoever. What is important is that batata ba Sata baleteka.
@ 12 – You had made me laugh. Indeed, as PF said when the inflation was going down, “you can’t eat inflation”. The irony is that now that they are in Government, they have began to know the importance of this statistic and are even using it to limit how much they will increase salaries of civil servant. It’s an improtant measure and I urge you to also learn of its importance. Just as Batata BaKateka has done.
So naive! da evidence is ryt there n u cn see dat da kwacha is losing value n then u say “reuters is against pf”? why cant u be objective or even bother to be sensible. u tried to find faught in levy n RB all the tym n now wit MCS da faughts r stairin @ u n u call it conspiracy? ridiculous!
i don’t see us surviving, PF is too busy doing politics, fighting the westerners,southerners, diaspora i don’t think Given and his friends have noticed. well i am not including MCS i know statistic don’t just make sense to him.
Ask Magande what he did to bring the kwacha down to k2800. This is not rocket science if the minister knows what he is doing. What we have now as leaders are just comedians.Â
No bumper harvest this year, muzalila ambuya anu chino chaka.
Donchi boma is announcing low inflation, barely 2 x90 days ago they disputed the same figures calculated by the same people in the very same way and announced by the very same people. Now they expect us to belive what they said we should not believe. This donchi is utter rubbish, musebanya kwena.
Nizii, bakaponya in the driving seat.
Good news. But we should keep an eye on that forex rate. We are an import oriented economy. We should not hide behind copper exports. All in all we thank God for the relative stability of our economy.
Finaly ukwa has survived tb joshuas prophesy. I was very sure of the kwacha future after his demise