• Government must come up with effective fiscal and monetary measures that will reduce the pace at which prices of goods and services are changing.
• Government must enhance production, reduce the cost of doing business in key sectors such as Agriculture.
• As the continued increase in food prices is likely to worsen livelihoods of most vulnerable who cannot cope with rise in cost of living
Civil Society for Poverty Reduction (CSPR) has advised Government to enhance production and reduce the cost of doing business in key sectors such as manufacturing, agriculture, mining, and tourism.
Organization Programs Manager Edward Musosa told Money FM News that it is worrying that prices of essential commodities such as mealie meal are trading as high as K210 in some parts of the country, hence the need to enhance productivity in Agriculture.
Mr. Musosa stated that according to Jesuit Centre for Theological Reflection, the price of non-food items such as charcoal has also risen from K375 for a 90kg bag to K540 and is likely to increase further given the high demand for charcoal triggered by load shedding.
“The continued increase in food prices is likely to worsen the livelihoods of the most vulnerable, who cannot cope with the rise in the cost of living. CSPR has observed that between November and December 2022, the JCTR Basic Needs and Nutrition Basket (BNNB) which measures the cost of living for a family of five has increased. For Lusaka Province, the BNNB increased from K8,567.2 to K8,982.82, an increase of K415.62,” Mr. Musosa said.
Mr. Musosa added that the continued rise in food and non-food prices is making it difficult for people to adjust their household budgets and meet the education expenses as children go back to school this month.
“As of December 2022, the annual inflation rate increased from 9.8% in November to 9.9%. In addition, the kwacha also depreciated against the dollar, attributed to increased imports of agriculture products and demand for imported goods during the festive season. The recently re-introduced load shedding will lead to high production costs which will eventually be passed on to consumers triggering a cost of living that is far out of the reach for poor households in Zambia,” he explained.
He was optimistic that the positive macroeconomic indicators as stated by Minister of Finance and National Planning last week during the 2022 economic performance and 2023 National Budget execution meeting, are translated into actual benefits for the people, especially the most vulnerable who are affected by the high cost of living currently being experienced.
“We therefore hope that Government comes up with effective fiscal and monetary measures, that will not only stabilize both the inflation and exchange rate but reduce the pace at which prices of goods and services are changing,” Mr. Musosa stated.
Recently, Jesuit Centre for Theological Reflection (JCTR) disclosed that the Basic Needs and Nutrition Basket for a family of five in Lusaka for December 2022, stood at K8, 982.82 which reflects a K 415.62 increase from the K8567.2 recorded in November, 2022.
