Zambia’s Inflation Up to 12% in September 2023

Zambia Annual Inflation Rate September 2022-2023 (%)

The Zambia Statistics Agency recently released its monthly macroeconomic stats for September 2023, indicating that the Annual Inflation Rate increased to 12.0% from 10.8% recorded in August 2023.

This means that on average, prices of goods and services increased by 12.0% between September 2022 and September 2023. This development was mainly attributed to price movements of selected food and non-food items.

Of the overall 12.0% annual inflation, the Food and Non-alcoholic beverages group contributed 7.7% points, while the Non-food group accounted for 4.3% points.

Of the 4.3% points, Transport contributed the highest at 1.6% followed by housing, water, electricity, gas & other fuels at 1.0% points, clothing & footwear and furnishings, household equipment and routine household maintenance at 0.6% and 0.5% points, respectively. The rest of the Non-Food group accounted for the remaining 0.6% points

Annual Food and Non-Food Inflation

Food Inflation

Annual Food Inflation for September 2023 was recorded at 13.4% compared to 12.6% in the previous month. This means on average prices of food items increased by 13.4% between September 2022 and September 2023.

This outturn was mainly attributed to price movements in cereals (i.e. breakfast & roller meal, bread flour, maize grain, rice and meats (mixed cuts, fillet steak, T-bone, chicken liver).

Non-Food Inflation

The Annual Non-Food Inflation for September 2023 was recorded at 10.1% compared to 8.5%. This outturn was mainly attributed to increases in prices of non-food items such as the purchase of vehicles (Toyota Hilux, Toyota Corolla, Nissan Hardbody) and fuels & lubricants (i.e. diesel, petrol).

Annual Inflation Rate by Consumer Price Index (CPI) for Main Group

The Annual Inflation Rate increased for the following main groups in September 2023:

  1. Food and Non-alcoholic beverages
    The CPI for Food and Non-alcoholic beverages increased by 13.4% between September 2022 and September 2023. This was higher than 12.1% recorded in the same month of 2022 and 12.6% recorded in August 2023.
  2. Clothing and Footwear
    The index for Clothing and Footwear increased by 8.3% between September 2022 and September 2023. This was lower than 9.1% recorded in September 2022 but higher than 8.2% recorded in August 2023.
  3. Furnishing, Household Equipment and Household Maintenance
    The CPI for the Furnishing, Household Equipment and Household Maintenance increased by 6.3% between September 2022 and September 2023. This was higher than 5.7% recorded in September 2022 and 5.1% recorded in August 2023.
  4. Health
    The Health CPI main group increased by 9.2% between September 2022 and September 2023. This was higher than 5.6% in the same month of 2022 and 9.0% recorded in August 2023.
  5. Transport
    The index for Transport increased by 22.9% between September 2022 and September 2023. This was higher than 9.7% recorded in September 2022 and 13.3% recorded in August 2023.
  6. Recreation and Culture
    The CPI for Recreation and Culture increased by 11.6% between September 2022 and September 2023. This was higher than the 10.2% recorded in the same month of 2022 and 10.7% recorded in August 2023.
  7. Restaurant & Hotel
    The CPI for the Restaurant & Hotel main group increased by 11.2% between September 2022 and September 2023. This was higher than the 7.1% recorded in the same month of 2022 and the 11.1% recorded in August 2023.
  8. Miscellaneous Goods and Services
    The CPI for Miscellaneous Goods and Services increased by 7.8% between September 2022 and September 2023. This was lower than the 8.8% recorded in September 2022 but above the 7.2% recorded in August 2023.

The Annual Inflation Rate slowed down for the following main groups in September 2023:

  1. Alcoholic Beverages and Tobacco
    The index for Alcoholic Beverages and Tobacco increased by 6.8% between September 2022 and September 2023. This was lower than the 7.5% recorded in the same month of 2022 and 7.1% recorded in August 2023.
  2. Communication
    The CPI for Communication increased by 0.5% between September 2022 and September 2023. This was lower than the 2.2% recorded in the same month of 2022 and 0.9% recorded in August 2023.
  3. Education
    The index for Education increased by 5.8% between September 2022 and September 2023. This was higher than 2.3% recorded in September 2022 but lower than 6.0% recorded in August 2023.

The Annual Inflation Rate remained unchanged for Housing, Water, Electricity, Gas, & Other Fuels CPI Main Groups in September 2023.

Housing, Water, Electricity, Gas, & Other
The CPI for the Housing, Water, Electricity, Gas & Other Fuels group increased by 8.2% between September 2022 and September 2023. This was higher than the 5.7% recorded in the same month of 2022 and the same as that recorded in August 2023.

Monthly Inflation Rate

The overall monthly inflation for September 2023 was recorded at 0.7% compared with 0.8% recorded in the previous month.

This outturn was mainly attributed to price movements in selected food and non-food items.

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