• Appreciation of the Kwacha and reduced inflation rate are not contradicting with the high prices of goods
• Single digit inflation of 9.7 percent means that the rate at which the cost of living is increasing is lowering
• Inflation is measured from a basket of food prices and not from one commodity
Minister of Finance and National Planning says appreciation of the Kwacha and reduced inflation rate are not contradicting with the high prices of goods and services on the market.
Speaking in an interview, Dr. Situmbeko Musokotwane said the single digit inflation of 9.7 percent means that the rate at which the cost of living is increasing is lowering consistently.
Dr. Musokotwane explained that inflation is measured from a basket of food prices and not from one commodity that a typical consumer consumes.
“While prices of certain commodities found in the food basket may be increasing, some items are recording price reductions which has contributed to the reduction of the inflation rate”, he said.
He stated that with the pace at which the inflation rate is reducing, the country might see a reduced inflation rate of 5 to 4 percent.
“The way Zambia measures inflation is just the same as it is measured in other countries and it is gratifying that Zambia’s inflation is consistently lowering while in other countries it is increasing, “he added.
Some stakeholders observed that the appreciation of the Kwacha against the United States Dollar and the reduction of the inflation rate to 9.7 percent are contradicting with the high prices of goods and services on the local market.
