Inflation declines to 6.6%

The annual inflation rate for the month of July, 2017 has decreased to 6.6 percent from 6.8 percent in June 2017.

This means that on average, prices increased by 6.6 percent between July 2016 and July 2017.

Central Statistical Office Director, John Kalumbi explained during the monthly bulletin presentation that the movement of consumer price indices (CPI) show a steadily increasing trend in the prices of commodities during the period of July 2016 to July 2017.

Mr. Kalumbi however,says the annual inflation rates over the same period have shown a decreasing pattern from 22.2 percent in July 2016 to 6.6 percent in July 2017.

He states that of the total 6.6% annual inflation rate recorded in July 2017, food and non-alcoholic beverages accounted for 2.9 percentage points, while non-food items accounted for a total of 3.7 percentage points.

Mr. Kalumbi says Lusaka Province had the highest provincial contribution of 1.9 percentage points to the overall annual inflation rate of 6.6 percent, implying that the price movements in Lusaka province had the greatest influence on the overall annual rate of inflation.

He adds that Western province had the lowest contribution of 0.2 percentage points.

And Zambia recorded a trade deficit valued at K335.2 million in June 2017 from K333.8 million recorded in May 2017.

This represents a 0.4 percent increase in the trade deficit. This means that the country imported more in June 2017 that it exported in nominal terms.