By JUDITH NAMUTOWE –
ZAMBIA has recorded a trade deficit  of  K651.8 million in January this year from a surplus of  K469.1 million  recorded in December last year.
The country’s annual rate of inflation slowed down to 6.1 per cent in February from 6.2 per cent recorded in January this year representing a marginal decrease of 0.1 per cent.
Central Statistical Office (CSO) acting director Goodson Sinyenga said this means the country imported more in January than it exported in nominal terms.
Mr Sinyenga said the trade deficit  can only be explained  by  a decline in exports  of metals by 1.5 per cent  and an increase  in imports of  consumer  and capital  goods  by 26.2 per cent respectively.
He told Journalists during a media briefing in Lusaka that this means, on average prices increased by 6.1 percent between February last year and February this year.
“Imports increased by 12.2 per cent  from  K7,878.5 million  in December 2017 to K8,841.2 million in January 2018, while exports  declined  by 1.9 per cent  from K8,348.5 million December  to K8,189.3 million in 2018,” he said.
And the year on year inflation rate as measured by the all items Consumer Price Index (CPI) for February this year marginally decreased by 0.1 per cent.
Mr Sinyenga said movement of the CPI show a steadily increasing trend in the prices of commodities during the period of February last year to February this year.
He however said the annual rates of inflation over the same period however showed a decreasing pattern from, 6.8 in February last year to 6.1 per cent in February this year.
Of the total 6.1 per cent annual inflation rate recorded in February this year, food and non- alcohol beverages accounted for 42.5 percentage points while non food items accounted for a total of 3.6 percentage points.
The year on year annual food inflation rate for February this year was static at 4. 6 per cent, while the year on year non –food inflation   for February was recorded at 7.9 per cent from 8.1 per cent recorded in January this year indicating a decrease of 0.2 percentage points.
The decrease in the annual non-food inflation was mainly attributed to the decreases in prices for items such as cigarettes, purchase of motor vehicles and airfare charges.