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:
- 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. - 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. - 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. - 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. - 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. - 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. - 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. - 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:
- 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. - 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. - 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.
