Declining food prices ease August inflation

Declining food prices eased August inflation by 0.4 percentage point from 8.7 percent recorded in July to 8.4 percent in August, published National Statistical Office (NSO) figures showed on Tuesday.

The data shows that during the month under review, food inflation rate slowed by1.5 percent compared to 2.1 percent registered in August 2020 while non-food inflation has stagnated at 0.4 percent as registered in August 2020.

According to the NSO Consumer Price Index (CPI) newsletter for August, the national food inflation rate for August 2021 stood at 9.7 percent whilst the non-food inflation rate was 7.2 percent.

Reads the newsletter in part: “The divisions above the 8.4 percent headline inflation rate for August 2021 are Transportation at10.7 percent and Food at 9.7 percent.

“In the non-food category, the three categories with the highest year on year inflation for August 2021 are transportation, furnishing and household and housing, water and electricity at 10.7 percent, 7.9 percent and 7.8 percent, respectively.

Economic statistician Alick Nyasulu observed that inflation will further go down in the country as food prices are projected to decline.

However, he said the non-food inflation is being sensitive to the depreciation of the kwacha and may continue to do so until we see a stable kwacha.

He said: “Its triggers are mainly externally driven than food inflation that is domestic in nature. Food inflation is likely to continue going down and overall inflation might take a slight downward trend but not significant in view of the currency depreciation.”