BOZ CITES INFLATIONARY PRESSURE CONTRIBUTORS

The Bank of Zambia has cited the rising international oil prices, which are currently quoting above US$ 100 per barrel and the projected global grain deficit as some factors to affect inflationary pressure in Zambia.

Zambia has recorded a 6.6 % inflation rate for the month of September, which the central bank however says, does not significantly affect the year-end target of a 7 per cent inflation rate.

This comes against a recorded increased inflation rate of 6.6 % for the month of September, up from 6.4 % in August.

In its bulletin, the Central Statistical Office attributed the September increased inflation to rising prices of food commodities, such as the staple maize meal.

And the central bank’s Monetary Policy Committee has further forecast the October inflation rate around the September levels.

In a statement, the committee has further cited labour related cost-push factors and the rising feedstock prices, as local front factors to affect future inflation until year-end.

The bank has also attributed the Zambian economy’s poor external performance to the current debt crisis in the Euro-zone and slowed down global economic activity.