ZACA DOWNPLAYS IMPACT OF LATEST REDUCTION IN INFLATION RATE
By Michael Kaluba
The Zambia Consumer Association-ZACA- has downplayed the significance of the latest reduction in the country’s inflation rate saying its impact is negligible as consumers continue to face high prices for essential goods and food items.
The annual inflation rate for December 2021 closed at 16.4 percent from 19.3 percent in November while Gross Domestic Product-GDP- in the third quarter of 2021 grew by 3.5 percent from negative 3 percent the same period last year.
But ZACA executive secretary Juba Sakala says the inflation figure as released by the Zambia statistics agency does not reflect or translate into benefits to consumers unless it results in a significant downward adjustment of prices on essential goods and food items.
Mr. Sakala argues that a quick survey on the ground would reveal that the kwacha remains weak and its value for consumers to buy essential goods remains low as citizens remain overstretched by a high cost of living and escalated cost of essential daily items such as food.
He has told Phoenix News that the true value of a slowdown in annual inflation rate should reflect and impact consumers positively but that currently, there is no trickledown effect amidst an ailing economy which has left Zambians yearning for the government to address the high cost of living.
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