• Inflation rate will go up although maybe not this month but next month.
• Major drivers of inflation will be the exchange rate and increase in fuel pump prices.
• Financial market players hope that inflation rate will stabilize
An Economist has projected an increase in inflation rate as Zambia Statistics Agency (ZamStats) announces figures today.
Speaking in an interview with Money FM News, Dr. Lubinda Haabazoka attributed the expected rise in inflation rate to the unstable exchange rate and increase in fuel pump prices.
Dr. Haabazoka noted that the Kwacha is likely to lose value as the festive season approaches because that is the trend it has always taken, which has a negative effect on containment of inflation.
He said financial market players hope that inflation rate will stabilize but based on the global economic indicators for growth and other trends, oil prices are expected to rise.
“I think that inflation rate will go up although maybe not this month but next month. Major drivers of inflation will be the exchange rate and increase in fuel pump prices.”
“Of course we hope that inflation rate will stabilize but looking at the global economic indicators for growth and other trends, we expect to see oil prices pushing up high and we expect the Zambian Kwacha to lose value as we approach the festive season because that is the trend it has always taken and unfortunately that has negative effects on inflation rate containment,” Dr. Haabazoka stated.
He however said it is very difficult to predict an actual rate, because arriving at a figure needs some fundamental analysis.
Zambia’s inflation rate increased to 10.8 percent in August 2023, from 10.3 percent in the previous month, largely due to movements in food prices.
