Central Statistical Office (CSO) on Thursday announced that the annual rate of inflation for August decreased to 19.6 per cent from 20.2 in July.
The African Consumer Union (ACU) said the reduction in inflation was a clear indication that the economy was improving.
ACU first vice-president Muyunda Ililonga said despite the country holding elections this month, the economy had remained stable and the Kwacha was improving against the Dollar.
Mr Ililonga said the drop in the inflation rate had also given investors confidence to inject more resources in the country due to the friendly environment.
“The reduction of inflation is a good indication that the economy is doing better and also the consumers are now able to afford the basic needs,” Mr Ililonga said.
He said the Kwacha has maintained its strength against the Dollar over the last few months that had seen goods and services becoming cheaper.
Mr Ililonga said the consumers are able to buy goods at a cheaper price now that there is a lot of competition.
And Zambia Consumer Association (ZACA) said last month the prices of commodities had gone up with some items being sold at twice the price in the previous months.
ZACA executive director Samuel Simutunda said the economy would improve especially that the environment was still conducive for both local and foreign investors.
“ If you look at the prices of commodities such as vegetables and livestock, they have gone down by half in most markets, just last month tomatoes were going at K5 for two but at the moment they are even trading for as low as K2 for four,” Mr Simutunda said.
Mr. Simutunda
Inflation at around 20% does NOT show that economy is “stable”. It shows either that fiscal policy is struggling under pressures caused by economical decline or that economics and fiscal policy are in disarray.
Please stop insulting human intelligence in order to please your uneducated master and preserve your job.
The PF leadership and their compromised institutions have always claimed that the economy is stable, which economy are they referring to? Zambian economy or in their personal pockets? Anyway, it is still don’t kubeba and we have been dununa reversed back to STRUCTURAL ADJUSTMENT PROGRAM PART II. IMF incoming! CSO has mostly shown a positive economical statistical outlook but the situation on the ground is dire. Country men and women buckle up and brace for a 5 years rough ride. At this moment, we needed a decisive and wise leader who has the confidence of the co-operating partners to negotiate for a better package. HH was a better option.
Zambia for all Zambians.
Sometimes one is given to wonder what type of economist creeps crawl the Zambia land scape. If an economy is in a cycle of high unemployment, falling production and a resultant decline in aggregate demand, of course if follows that it will also experience a deflationary situation. And these wicked economic Sangomas from Blantyre Lilongwe want to make us believe things are stable or improving! Masipa feela a linja ni lips to Ze!
If only the dununa voters knew about economic strategies that selfish African politicians use to sustain their positions, and in what situations politicians find war to be more profitable than peace.