Inflation Decline Shows Reforms Paying Off

By Masauso Mkwayaya President HAKAINDE HICHILEMA says the continued decline in inflation is a sign that Zambia’s economic reforms are beginning to yield results. President HICHILEMA says lower inflation means citizens’ money can go further, while reduced borrowing costs will enable Government to do more with available resources. President HICHILEMA says the development is a result of the difficult decisions made over the past five years, adding that the Government’s economic discipline is paying off. He, however, says Government is aware that many families are still struggling with high prices, while a significant number of young people remain unemployed. President HICHILEMA says the focus of the next five years will therefore be on reducing the cost of living and creating more jobs. He says every Government decision will be measured against these two priorities. The Zambia Statistics Agency announced today that annual inflation fell to 6.2 percent in August, from 6.5 percent in July. Inflation stood at 23 percent when the UPND administration took office in 2021, but is now within the Bank of Zambia’s target range of between 6 and 8 percent. The President has also described the strong investor response to the recent Government bond auction as a vote of confidence in Zambia’s economic stability and reforms. He says the confidence will translate into practical benefits for citizens through lower prices, cheaper credit and increased employment opportunities. This follows a Government bond auction held earlier this week, the first since the general election, where investor bids exceeded the 6.3 billion kwacha on offer by 37 percent. Demand was strongest for the seven-year bond, whose yield fell by more than one percentage point compared to the previous auction. President HICHILEMA says the decline in borrowing costs will free up more resources for essential services and investments. This is according to a statement issued to ZNBC News by State House Chief Communication Specialist CLAYSON HAMASAKA.