• The basket also recorded increases in the price of 3.6 litres of cooking oil which went up by K6.00.
• Lifting of the temporal suspension of import duty on edible oils contributed to the rise in cooking oil prices.
• Government must consider temporary suspension of import duty on edible crude oils to cushion cooking oil production

The cost of living in the country has remained high for an average Zambian to afford, despite the recorded decline in the annual rate of inflation for March, 2022 to 13.1% from 14.2% recorded in February 2022.
The rising cost of living is expected to continue skyrocketing as international fuel prices surge upwards in view of the Ukraine-Russia geopolitical tension.
And Analysts say even with the Constituency Development Fund (CDF), social protection interventions, payment of various arrears and employment interventions, the rising cost of living means that these measures may not be enough to cushion households as families will face increased hurdles to meet their most basic needs.

According to the basic needs and nutrition basket as measured by Jesuit Centre for Theological Reflection (JCTR), the cost of living for a family of five in Lusaka rose by K106.12 ngwee to K9, 411.50 ngwee in March, 2022, compared to the February basket which stood at K9, 305.38 ngwee.

The rise in the basket has been attributed to increased prices of items such as roller mealie meal, 1 kilogram of Kapenta, 40 kilograms of vegetables, fuel and 3.6 litres of cooking oil which went up by K6 from K159.63 ngwee to K165.

JCTR Programme Manager Chama Mundia said the increase in cooking oil prices is due to the lifting of the temporal suspension of import duty on edible oils, while the surge in Crude oil prices on the international market prices is due to the Ukraine-Russia conflict as the two countries ship more than 75% of global exports of sunflower oil.

Ms. Mundia stated that total food costs stood at K3, 738.04 ngwee from K3, 648.92 ngwee, representing an increase of K89.12 ngwee.

She however noted that 4 kilograms of onion reduced in view of increased domestic supply of the commodity moving from K118.20 ngwee to K100, while 14 kilograms of other fruits reduced by K36.66 ngwee, with 1 kilogram of cassava flour also reducing from K22 to K137, a reduction of K8.

“The upward movement in the basket is attributed to increased prices of items such as two 25kg bags of roller mealie meal which went up by K70.36 from K205.64 (K102.82/per bag) to K276.00 (K138/per bag), 1kg of Kapenta also went up by K40.41 from K249.52 to K290.00, 40kg of vegetables also went up by K14.05 from K566.41 to K580.49.”

“Additionally, the basket also recorded increases in the price of 3.6 litres of cooking oil which went up by K6.00 from K159.63 to K165.00. However, the basket recorded decreases in 4kg of onion in view of increased domestic supply of the commodity moving from K118.20 (29.55/kg) to K100 (K25/kg), 14kg of other fruits which reduced by K36.66 from K399.66 (28.55/kg) to K364.00 (26.00/kg). 1 kg cassava flour also reduced from K146.43 from K22.94 to K137.61, a reduction of K8.82,” Ms. Mundia noted.

She further said the increase in cooking oil prices is due to the lifting of the temporal suspension of import duty on edible oils, coupled with the surge in the international prices of crude edible oil as a result of the Ukraine-Russia conflict because the two countries ship more than 75% of global exports of sunflower oil.

Meanwhile, Ms. Mundia reaffirmed calls for Energy Regulation Board (ERB) to revert to quarterly review of fuel pump prices as opposed to a 30 day review cycles in order to aid in stabilizing prices of petroleum products in the country.
She however commended government for postponing the planned increase in electricity tariffs that was set for March 2022, with a recommendation that the hike remains postponed as a cushioning measure.

Zambians are already facing significant challenges given the rising cost of living. Increasing electricity tariffs now would further negatively impact on the cost of living.”

“Lastly, we call on government to consider temporary suspension of import duty on edible crude oils to cushion cooking oil production and contribute to lower cooking oil prices,” she said.

According to the 2020 Labour Force Survey, average national incomes rose to K4, 391, therefore the need for government to put in place measures that will see a reduction in the cost of living, given high poverty levels pegged at over 54 percent and very low incomes.