The Jesuit Centre for Theological Reflection (JCTR) says the year-end inflation target of no more than 6.5% may prove to be elusive in due course if the general performance of the economy is not consolidated.
JCTR has since appealed to government and other stakeholders to consolidate economic management and ensure that the year-end inflation target of no more than 6.5% is attained.
JCTR notes that the continued increase in inflation if not addressed in time will imply that producers will continue to transfer costs to consumers.
It states that this is particularly disturbing, in that since January 2014 the annual rate of inflation has been on a gradual and yet steady increase with no proactive actions from policy makers on how to deal with the slowly emerging situation.
It points out that the Basic Needs Basket indicates that the cost of living in the country has continued to increase, with the cost of living for the month of July 2014 for an average family of five living in Lusaka increased to K3, 692.34, an increase of K11.20 from June’s Basic Needs Basket which stood at K3, 681.14.
JCTR says the rise in the cost of living does not reflect well regarding the economic management of the country.
It says the Basic Needs Basket exposes the plight of the poor in society and how the average person is struggling to afford even the most basic monthly commodities, with Kapenta increasing by K11.84 per Kg, Mealie meal for a 25 Kg bag by K1.28 and Vegetables by K1.55 per Kg.
The JCTR laments that as the average person struggles to make ends meet, parliamentarians in contrast are keen to have their perks revised upwards when in effect their emoluments and incentives are already above board.
Of course PF are interested in political consolidation and not economic consolidation. There are not interested in the managing macros but eyes are focused on surviving the 2016 chasm.
PF do something on the emerging state of affairs. A stitch in time prevents nine. Nib the situation that is arising in the bud before we hit stagflation.
ABC please put the econimic engine in order before the house catches fire.
Thank you JCTR for bringing a Christ felt concern for the poor. It was shocking how these parliamentarians tacitly stated that ‘there was no ban on raising pay and benefit, as long as all civil servants also got it.’ It was like a confederacy of Dunces! What about how it would drive up inflation and a new cycle on pay raises across all private sectors to meet with hyper inflation(in the very near future)!