Economic Analyst, Yusuf Dodia says the deterioration of Kwacha is one of the major factors affecting the country’s inflation rate.
He has attributed the rise of the inflation rate from 9.4 to 9.6 to the increase of the credit control measures which have gone up from 9 percent to 9.25 percent.
Speaking in an Interview with ZANIS in Kabwe, Mr Dodia observed that the increase in fuel pump prices and high prices of commodities are indicators of the rising inflation rate in the country.
He urged the Zambia Statistics Agency ( ZamStats) to consider the pricing of commodities as the underlying foundation for calculating the country’s inflation rate because the numbers of the inflation rate are not in line with the prices of goods and services.
“In my view, ZamStats is using perimeters that are not reflecting the consumer price index and therefore, we are having an inflation rate which is completely disjointed from the reality on ground and Zamstats needs to address this challenge,” Mr Dodia said.
Mr Dodia noted that stabilizing and controlling the high inflation rate is not the government’s duty but rather an economic activity.
He however said that the government can only change policies that stabilize and support the reduction of the inflation rate.
The economic analyst has implored policy makers to implement a policy where foreign exchange earnings from the country’s exports are kept in Zambian banks.
He added that recapitalizing the economy from export earnings is a sustainable way of building and expanding the country’s economy thus creating a long lasting impact on the Zambian people.