The Central Statistics Office announced that inflation had risen to 7.9% in June 2014 from 7.8% in the previous month. The increase was driven by a rise in the prices of non-food items. Preliminary figures indicate that there was a trade surplus of K43m in May, up 47.3% from a revised surplus of K29.2m in April.
Liquidity tightening measures by the central bank look to have countered the rate at which inflation increased - consumers have been hit with a double whammy of currency depreciation and increase in fuel prices in the first half of the year. Electricity tariff increments are also set to kick in starting July 1st which will certainly have an impact of food and non-food prices. Having said that, is Bank of Zambia's target of 6.5% inflation by year-end achievable?
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *