THE Economics Association of Zambia (EAZ) has attributed the fall of inflation for the month of August to the harvest season which has necessitated the competitive prices of food and has expressed hope that a further reduction may occur.
In an interview yesterday, EAZ president Chrispin Mphuka said that the fall of inflation was a good indicator and attributed it to the harvest season which has brought abundant food on the market, resulting in the lowering of prices of some food items.
Dr Mphuka said that a drop of 0.6 percent of inflation from 20.6 to 19.6 percentage margin was significant and he expressed hope that it may fall even further.
“The fall of inflation can be attributed to the fact that we are in a harvest season, hence there is a lot of food and this has brought about competitive prices. This is a good indication and hopefully inflation may even fall further,” Dr Mphuka said.
On Friday, Central Statistics Office (CSO) director of census and statistics John Kalumbi announced that the rate of inflation for August 2016 has decreased to 19.6 percent from 20.2 percent recorded in July 2016 as measured by the all-items consumer price index.
Mr Kalumbi said that the decrease of 0.6 percent in the annual rate of inflation from last month was mainly attributed to the decrease in food prices across the country.
He explained that on average, the prices increased by 19.6 percent between August 2015 and August 2016.
Mr Kalumbi also disclosed that the annual food inflation for August 2016 was recorded at 24.1 percent, while in July it was at 24.8 percent.
He disclosed that the 0.5 percent decrease in non-food inflation was mainly attributed to decreases in prices of charcoal, motor vehicles and bicycles.