Zambia’s inflation slows, food prices ease

of easing price pressures in Africa caused in part by a drop in the cost of basic food.
Inflation in the Southern African country was at 9,2 percent in March.
“The reduction is attributed to decreases in food and non-food prices,” the Central Statistics Office said yesterday. The government last month told the state-run Food Reserve Agency to cut maize prices by 20 percent to bring down the cost of the staple.
Zambia had a bumper maize harvest in the last season, producing 2,8 million tonnes and exporting a surplus of 1,1 million tonnes.
“If we can stabilise food inflation we should be able to reach the end-of-year target.
“We are likely to have another bumper maize harvest and this should stabilise food price,” said Oliver Saasa, an economist at Mulungushi University.
The central bank has said inflation should end the year at 8 percent. The CSO also said the trade account recorded a surplus 862,3 billion kwacha (US$182,9 million) in March from 645,2 billion in February.
In contrast to Zambia, inflation is picking up in many African countries due to the sharply escalating cost of food and energy.
In Kenya, it leapt to 9,19 percent in March from 6,54 percent the previous month, while Uganda’s CPI jumped to 11,9 percent from 6,4 percent over the same period.
South Africa, the continent’s biggest economy, inflation stands at a relatively tame 4,1 percent but economists expect that to pick up to an average of 4,11 percent for the whole of the year. – Reuters.