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Monday, 2 June 2008

Inflation Statistics - May 2008

The CSO May Edition can be found here. The inflation is on the rise. Inflation was recorded at 10.9 percent as at May 2008. This rate is 0.8 of a percentage point higher than the April rate of 10.1 percent. Compared with the same period last year, the annual rate of inflation declined by 0.9 percentage points, from 11.8 percent in May 2007 to 10.9 percent in May 2008.

The increase of 0.8 of a percentage point in the annual inflation rate is driven by increase in the cost of food. Annual food inflation rate was recorded at 11.7 percent in May 2008, compared to 9.8 percent in April 2008. The increase in food inflation is largely due to in the cost of breakfast meal, other cereals and cereal products, meat, fresh vegetables, cooking oil, milk and milk products, table salt, sugar and other processed food products. Partially offsetting these increases were declines in the cost of maize grain, fish, dried kapenta, dried beans, tubers and shelled groundnuts.


  1. Do they say what the Core Inflation rate is ?

    Because while inflation including food and oil is useful for many aspects of policy, there is a monetary problem is the core inflation is rising too.

  2. The annual non-food inflation rate was recorded at 10.1 percent in May 2008, down from 10.5 percent in April 2008.

  3. 0.8 % of food inflation ?

    That's impossible !

  4. I am always skeptical of the distinction between core and non-core inflation. Yes non core inflation suggests deeper issues about inflation expectations going forward, but in developing countries the two are surely conflated because non-core prices aren't as fixed as in developing countries.

  5. but in developing countries the two are surely conflated because non-core prices aren't as fixed as in developing countries.

    I'm confused.

    Don't develloping nations usually have price controls on Food and Fuel while develloped ones don't ?

  6. May be its a confusion of terminology here.

    Core = non-food/fuel inflation
    Non - core = food / fuel inflation.

    If we are on the same page..then my point was that in developing countries non core inflation move about and is not "fixed" through menu adjustments, which tend to occur less often in developing countries. When prices go up for your TV set, it takes a while before we feel it on the high street. My experience is that in Zambia, you feel it almost instantly I think. There are no "set" prices for those things...they move about as much as food and other items...


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