RUSSIA’S WITHDRAWAL FROM A UN-BROKERED AGREEMENT LIKELY TO AFFECT ZAMBIA’S INFLATION

Economist Trevor Hambayi says Russia’s withdrawal from a united nations-brokered agreement could have an impact on Zambia’s inflation because of the anticipated further increase in global food prices.

Russia recently withdrew from an un-brokered agreement that allowed Ukraine to safely export grains from its ports in the black sea, a move that is expected to have a significant impact on global food prices.

In an interview with phoenix news, Mr. Hambayi says a further increase in global food prices will make it difficult for Zambia to keep a single digit inflation rate.

Mr. Hambayi however says this should compel the country to increase agricultural production of wheat to take advantage of the African market that will be looking for alternative sources of the commodity.

He adds that Zambia should not be on the list of countries seeking alternatives because it has enough land and water bodies to produce enough for both local and export markets.