Inflation At 18-Year High On Meat And Fish Prices

May has seen inflation rise to an 18-year high as the cost of meat and fish increased.

Compared to the same period last year, consumer prices for these goods rose 23.2% according to Zambia’s interim statistician-general, Mulenga Musepa. 

As a result of this, annual food inflation increased to 28.5%. In day-to-day life this means that food is now over a quarter more expensive than it was this time last year.

The milestone is one which Zambia should never have reached, with the country marking its second year in which inflation has been greater than the central bank’s target of 6-8%. High and rising inflation is expected to continue until the start of 2023 if nothing changes.  

As the Kwacha remains one of the worst-performing African currencies, adding to inflation within the country, a deal with the International Monetary Fund (IMF) is crucial if the country is to ease inflationary pressures.

Analysts at FirstRand Ltd.’s Rand Merchant Bank in Johannesburg have said that “significant changes in the currency’s trajectory are only likely to materialise post an IMF deal.”