Sharp decline in inflation disputed


The Economics Association of Zambia (EAZ) has disputed the sharp decline in the October annual rate of inflation to 12.5% from 18.9% in September 2016.

EAZ president Chrispin Mpuka says his association is finding it difficult to make sense of the fact that inflation has dropped by 6 percent in just one month despite the current price pressures.

Dr. Mpuka says the EAZ does not think that the 12. 5 percent inflation rate for October announced by the Central Statistical Office recently reflects the prices that are prevailing in the economy.

He says the sense that his association is getting is that the base of the measurement scale of the country’s inflation may have been changed.

In an interview with Qfm News, Dr. Mpuka says this is because there is no way that inflation can drop by 6 percent when the prices of commodities are going up following the hike in fuel prices.

He states that the EAZ has noted that the interest rates and the cost of accessing credit by the private sector are still very high.

Dr. Mpuka states that this is why his Association projected that Zambia’s inflation can only be contained to single digit gradually over a period of two to three years.