Zambia’s annual rate of inflation, as measured by the Consumer Price Index (CPI) for February 2014, has been recorded at 7.6 per cent compared to the 7.3 per cent recorded in January 2014.
This means that on average, prices increased by 7.6 per cent between February 2013 and February 2014.
According to the Central Statistical Office, the annual food inflation rate for February was recorded at 7.5 per cent compared to 5.9 per cent recorded in January 2014, representing a 1.6 percentage point increase.
Meanwhile, the Zambian Kwacha closed the month of February down at K5.798/K5.808 from the K5.5726/K5.5826 recorded on 1 February.
The depreciation is attributed to increased demand for the US dollar from importers wanting to cover their foreign obligations to minimise currency losses, according to Cavmont capital bank market report.
The bank said in the absence of improved supply, the Kwacha was likely to remain under pressure in the short to medium term.