• The economic fundamentals that usually speak around influence for inflation have not changed.
• What was obtaining three months ago could still be the same.
• This month’s inflation rate is likely to drop by 1 or 2 digits or be maintained at 9.8 percent.

An Economist has projected a slight decline in the annual rate of inflation for December, 2022 by 1 or 2 digits.
Speaking in an interview with Money FM News, Partner Siyabutuba said this is because all economic fundamentals that usually influence the inflation rate have not changed.
Mr. Siyabutuba further attributed the anticipate reduction to the fact that government has concluded the procurement of fertilizer that was causing pressure on expenditure levels.
“The economic fundamentals that usually speak around influence for inflation have not changed. I think what was obtaining three months ago could still be the same. Infact, we are likely to see a further reduction, it looks like government has concluded the procurement of fertilizers that was basically causing pressure on expenditure levels but also the fact that there has been more consumption than production on the side of both small scale and commercial farmers.”
“So after this level of stability in the month of December, the fact that farmers would have concluded most of these transactions, you are likely to see either maintenance in terms of the inflation figures or we can even have an experience of a 1 or 2 digits drop in the month of December,” Mr. Siyabutuba stated.
He further said in view of the economic stability witnessed in December 2022, this month’s inflation rate is likely to drop by 1 or 2 digits or be maintained at 9.8 percent.
“What mainly is going to either let it off which I think government managed to get hold of it was a quick intervention in ensuring that what was going to be more of a crisis around procurement of farming inputs which was making farmers go out on stampede to buying because of panic, that was letting go a lot of hold around these economic fundamentals especially around inflation and the Kwacha-Dollar relationship. But by and large, we are likely to see maintenance of the same figures. My projection is that it can even drop by 1 or 2 digits because of the stability that has happened in the month of December,” he added.
Annual Inflation rate for November increased to 9.8 percent from 9.7 percent recorded in October, 2022 and Zambia Statistics Agency (ZamStats) is today expected to announce inflation rate for December, 2022.