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Zambia records 0.9% decline in inflation

Zambia records 0.9% decline in inflation
Written by Florence Bupe
Saturday, March 28, 2009 5:47:49 AM

THE Central Statistical Office (CSO) has observed that Zambia is recording trade deficits as a result of the global financial crisis which has negatively impacted on copper prices.

And the country has recorded a 0.9 percentage point decline in the rate of inflation for the month of March, 2009, from 14 per cent in February to the current 13.1per cent.

Releasing the monthly bulletin in Lusaka on Friday, CSO director Efreda Chulu said with the prevailing global economic challenges which had affected commodity prices, the country was recording reduced revenue from copper exports, hence the deficit trade balance.

Zambia recorded a trade deficit of K163.3 billion for the month of February.

“During the month of February 2009, the country exported less than it imported in value terms. The total value of exports in February 2009 was K1,128.5 billion compared to K1,117.9 in January 2009,” she said.

The major source of Zambia’s imports in February was South Africa, accounting for 40.9 per cent of the total value of imports, followed by the Democratic Republic of Congo (DRC) through the import of copper ores and concentrates.

The Asian market accounted for the largest export market share, accounting for 19.7 per cent, followed by the Southern African Development Community (SADC) with 19.2 per cent.

And the country’s inflation rate has recorded a further decline mainly due to reduced food prices.

“The decline in the annual rate of inflation in March 2009 was mainly due to reductions in the prices of food products such as fish, kapenta, vegetables and alcoholic beverages,” said Chulu.

Labels: INFLATION

posted by MrK @ 5:47 AM