Inflation trends lower on food prices

Zambia’s inflation slowed slightly to 9.1 percent year-on-year in May from 9.2 percent the previous month on lower food prices, the Central Statistical Office said on Thursday.

“The decline is attributed to the decrease in some food prices. The recent increase in fuel prices will be reflected in June 2010 CPI,” the CSO said in a statement.

Bank of Zambia Governor Caleb Funday said two weeks ago the southern Africa nation would likely achieve its target of 8 percent inflation by the end of the year despite higher fuel prices and a planned rise in electricity tariffs.

Power utility Zesco last month asked for a 36 percent increase in electricity prices from July in Africa’s biggest copper producer.

The CSO also said the trade account registered a surplus of 1.1 trillion kwacha in April compared with 752.9 billion in March, due to higher copper exports.

Share this post