• The policies government is implementing are yielding results.
• We want stability in the economy and this is what we are seeing.
• The decline in annual inflation rate is a positive development.

Economics Association of Zambia (EAZ) has urged government to continue with policies it has been implementing both at the macro or fiscal side “at Ministry of Finance side” and monetary side “which is Bank of Zambia side” to ensure the Economy gets to shape.

EAZ Interim National Secretary Gibson Masumbu tells Money FM News in an interview that the policies government is implementing are yielding results evidenced through the stable exchange rate and inflation rate.

Mr. Masumbu said the association is aware that government has been implementing some structural reforms to ensure the economy gets back to shape.

“We want to encourage them to continue, those policies are yielding results and you can see at least there is stability in both the exchange rate and also inflation rate,” he said

“That is what we want, we want stability in the economy and this is what we are seeing,” he added.

Mr. Masumbu further indicated that the decline in annual inflation rate for the Month of May 2022 to 10.2 percent from 11.5 percent recorded in April 2022 is a positive development considering the rate has been on the downward trend for the last couple of months.

He explained the trend implies that consumers at a household level will be able to budget over a long time horizon to purchase a commodity at the same price, further hoping the trend is maintained beyond the second-half of the year.

“It’s a very good development, basically we hope that this trend will be maintained even beyond the second half of the year.” Mr. Masumbu stated.

Zambia Statistics Agency, Thursday, revealed that the country’s overall Annual Inflation rate has slowed down to 10.2 percent for the Month of May 2022 from 11.5 percent recorded in April this year.

ZamStats Interim Statistician General Mulenga Musepa noted the slow-down in annual inflation was mainly attributed to price movements in both food and Non-food items.

He said of the overall 10.2 percent annual inflation, Food and Non-alcoholic beverages group contributed 6.9 percentage points, while Non-food items accounted for 3.3 percentage points.

“Of the 3.3 percentage points, the Clothing and footwear contributed the highest at 0.8 percentage points, followed by Housing, water, electricity, gas and other fuels at 0.7 percentage points; Furnishing Household equipment and routine household maintenance groups contributed 0.6 percentage points. The rest of the Non-Food group accounted for the remaining 1.2 percentage points.” Mr. Musepa stated.