INCREASING INFLATION RATE WILL HAVE ADVERSE IMPACT ON CONSUMERS AND THE ECONOMY

Chartered Accountant and Financial Analyst, Naylor Kopakopa says the increase in the annual rate of inflation from 9.8 percent in June to 10.3 percent in July will have an adverse impact on the consumer and the economy at large.

Mr Kopakopa notes that this increase will rapidly increase the cost of daily needs, increase the cost of doing business of which those with low or fixed incomes will feel the impact most.

He is of the view that many factors have contributed to the rise of inflation such as limited supply of fuel, a relaxed monetary policy with a larger money supply than the economy can support and unstable foreign exchange rate.

Mr Kopakopa in an interview with Phoenix News has since urged the government to come up with measures that will keep inflation within an optimal range and promote economic growth.

According to the Zambia Statistics Agency, the annual rate of inflation has increased from 9.8 percent recorded in June to 10.3 percent in July.