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‘Inflation rate reduction has no effect on cost of living’

By MERVIS MUSONDA

Despite the inflation hitting a single digit it has no positive effective on the cost of living, Economist Lubinda Habazoka has said.

Dr Habazoka said people should understand that the reduction in the inflation does not mean prices of commodities need to reduce.

He said reduction in inflation simply means the slow pace at which prices are increasing.

He has since suggested that there is need to focus on ensuring the exchange rate reduces in order for prices of goods and services to reduce.

He said prices could only fall when the inflation hit zero or negative, this is when it can have a positive effect on the welfare of the people.

And another Economist, Yusuf Dodia, says that there is a disconnect between the inflation rate which was shared by the government and the reality that is on the ground in terms of the cost of living.

 Mr. Dodia says what is been presented by government is different from what is obtaining from the ground

He has questioned why the inflation rate has continued to drop despite the depreciation in the kwacha against other currencies

On Thursday, the inflation rate dropped to  a single digit after almost three years.

The annual inflation rate for the month of May, 2022 hit single digit for the first time in 3 years after dropping to 9.7% in June from 10.2% recorded in May, 2022.

And Government Spokesperson Chushi Kasanda says government is confident that the reduction in the inflation rate will soon start trickling down to the general populace.

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