Inflation jumps to 8.1%

The annual inflation rate for the month of August has increased to 8.1 percent from 7.8 percent recorded in July, the Central Statistical Office (CSO) has announced.

The 8.1 percent recorded this month is the highest on record since November 2016, when inflation was at 8.8 percent.

CSO acting director Goodson Sinyenga told journalists in Lusaka today that the increase in the inflation rate can be attributed mainly to the upward movements in prices of breakfast mealie meal and cassava.

“The year-on-year inflation rate as measured by the all items Consumer Price Index (CPI) for August, 2018, increased to 8.1 per cent from 7.8 per cent recorded in July, 2018. This means that on average, prices of goods and services increased by 8.1 per cent between August, 2017, and August, 2018,” Sinyenga told said. “The increase in the annual rate of inflation is mainly attributed to both food and non-food items such as breakfast mealie meal, purchase of vehicles and charcoal.”

Sinyenga has further revealed that there is an increase in non-food annual inflation rate from 7.6 to 7.8 indicating 0.2 in of the increase and attributes it to price changes for motor vehicles and charcoal.

Meanwhile, Sinyenga announced that Zambia’s trade deficit decreased by 48.8 percent from K1, 620 million recorded in June to K829 million in July which is attributed to the Country having imported than what it exported.