INFLATION can only come down if the local markets step up production, says financial analyst Maambo Hamaundu.
Mr Hamaundu said in an interview that it was difficult to bring down the prices of goods once they went up which inevitably affected the rate of inflation.
“It is difficult to bring down inflation because what is driving it is the exchange rate and generally prices are going up including of that 0f mealie meal so it is difficult for one to reduce the prices,” he said.
He however said high productivity by the local market could help bring down inflation rate because there would more products on the market.
“It is important that we become a bit more productive, this is because we will be producing more goods internally,
“Once supply is improved, prices will go down because a lot of goods will be available with little consumption and in that way prices will be forced to come down,” he said
Mr Hamaundu explained that the increase in inflation rate was a reflection of economic happenings in reality because it was a measure of prices.
“Once prices go up, they stay up and they will not come down; the increase of inflation is an increase of what is happening in reality,
“This is because inflation is a measure of prices so it shows you the extent to which the prices of goods and services have gone up,” he said.
Mr Hamaundu said inflation rate was also an indication of poverty levels which had afflicted many citizens.
He explained that people’s income were declining or remained stagnant whereas the prices continued to go up.
“This means that life will become more and more difficult for many people in the country,
“It is also an indication that we had totally wrong projections at the beginning of the year because we had targeted an end year inflation rate of not more than 7 percent,” he said.