Inflation Climbed To 15.7% In April

Zambia’s annual inflation rate has increased to 15.7% in April; up from 14% in March this year. 

This marks the highest rate of inflation in almost four years, following 13 consecutive months of increase. 

The Kwacha has weakened 2.5% against the dollar this month, falling by a total of 24% to make it the worst-performing currency in Africa. 

The depreciation was partly driven by investor fears that Zambia will default on its debts, with Moody’s and Fitch ratings agencies both downgrading their assessments of the country in April. 

Other issues include a severe drought during this year’s rainy season, which has pushed food prices higher and slashed outputs at hydropower plants.

Speaking to journalists, the Statistician General for the Central Statistics Authority, Mulenga Musepa, said the increased inflation was largely due to price increases in food items, including dried bream, dried kapenta, cooking oil, chicken and suga.

The Bank of Zambia says inflation rates are expected to remain high for the early part of its two-year forecast period, preventing the bank from cutting interest rates which could help cushion the economy against the impact of the Covid-19 pandemic.

Photo: AFP via Getty Images