Inflation drop not reflected in prices – ZACA
By Thandizo Banda
THE Zambia Consumer Association (ZACA) has accused government of celebrating a statistical drop in inflation while commodity prices continue to rise.
ZACA executive secretary Juba Sakala said in a statement the drop in inflation has no impact on the living standards of the people of Zambia.
Sakala said Zambians who were consumers were seeing no relief on the prices of essential commodities such as mealie meal, cooking oil and fuel.
“This situation reflects the reality that inflation measures the rate of increase in prices, not an immediate reduction in existing price levels,” he said.
Sakala said the persistently high cost of production remained a major driver of high consumer prices.
He said the high prices of commodities had a negative impact at the household level as they forced families to go into debt and increased the economic burden.
“Manufacturers and retailers continue to face high costs of fuel, electricity, transport, raw materials and financing. These costs are inevitably passed onto consumers, thereby offsetting the benefits of declining inflation,” Sakala said.
He urged government to prioritise interventions that directly lowered the cost of production and gave hope to the people of Zambia for a better future.
“This includes stabilising fuel prices, improving energy supply and affordability, enhancing local production of raw materials and offering targeted tax incentives to producers,” Sakala said.
He said addressing inefficiencies in transportation and supply chains would also play a critical role in easing cost pressures.
“Furthermore, strengthening competition and monitoring market practices will help ensure that any reduction in production costs is fairly passed on to consumers,” he said.
“In conclusion, sustainable price relief for consumers will only be achieved when the underlying cost of production is reduced.”
Sakala said ZACA remained committed to advocating policies that protected consumers and promoted a fair, efficient and affordable market environment.
