STATE OF THE MEDIA REPORT QUARTER 4, 2020 3.3. ECONOMIC ENVIRONMENT The economic environment, despite some minor gains, posted similar performance with regard to the economic fundamentals which had a bleak outlook in the first, second and third quarters. For example, at the beginning of the quarter on 1st October, the dollar was selling at an average of K20 whereas at the close of the quarter, one dollar was selling at an average of K21 as shown in the summary chart below19. Performance of the Dollar-Kwacha in the fourth Quarter 21.5000 21.0000 20.5000 20.0000 19.5000 19.0000 Buying Selling On the other hand, the annual inflation rate continued to post upward trends with the year on year inflation rate for October at 16%, November at 17.4% and December at 19.2% mainly attributed to increase in the price of food items. This, therefore, meant the cost of goods and services equally increased in the quarter under review20. The table below presents the annual inflation rate trajectory from December, 2019 to December, 2020: 19 According to data from the BOZ Historical series of daily rates. Available at https://www.boz.zm/historicalseries-of-daily-zmw-usd-exchange-rates-zmw.htm 20 According to the Zambia Statistics Agency monthly Bulletins for October, November and December 2020. Available at https://www.zamstats.gov.zm/index.php/publications P a g e 28 | 56