The Bank of Zambia-BOZ says the general public should not mistake the slowdown in inflation to mean a reduction in commodity prices clarifying that inflation depicts the rate at which prices increase and not decrease.
BOZ Director Economics, Jonathan Chipili clarifies that the current rate of inflation simply means that commodity prices will continue to rise but at a slower rate of 9.7 percent as opposed to a higher rate of increase at 24 percent last year.
Several stakeholders, people, businesses and online blogs have been questioning how commodity prices remain high with some continuing to rise while the country has reported reduced inflation from over 24 percent last year to a single digit rate of 9.7 for the month of June.
But Mr Chipili says the single digit inflation rate towards the bank of Zambia’s target of 6 to 8 percent, does not mean prices will go down but that with slowed down inflation, prices will be rising at a more desirable rate as opposed to when inflation is high.
He adds that the current inflation rate is attributable to the stable exchange rate, the reduced price of maize due to the country enjoying a surplus in production and the gains made by the kwacha, as well as the high supply of vegetables on the market.