Government urged to come up with possible measures to arrest the continued escalation of prices of goods and services.

Anthony Tapa
Solwezi, North Western Province
August 28, 2019
Government urged to come up with possible measures to arrest the continued escalation of prices of goods and services.


A Solwezi based economists says there is need of government to come up with immediate possible measures to arrest the continued escalation of prices of goods and services in the country.

Reacting to the bank of Zambia, second quarter report of 2019 released on 21st august 2019, AMOS MPENGE   said in an interview that  the observation picked by the bank of Zambia that the inflation rate will remain above the upper bound of the 6 to 8% target is good, though it has its effects on the life of a common Zambian.

‘’the observation is telling a common Zambian that life will not be easy because the prices of goods and services is likely not going to go  down but up’’ mr mpenge said.

He said the escalation of the prices of goods and services are likely to continue going up thereby affecting the basic need basket of every town in the country.

‘’ for example here  in Solwezi , we may not know the basic need  basket cost today  but looking at the percentage of the inflation rate which is likely to maintain itself  at 6 to 8% or over 8%. Meaning the current prices are likely to go upwards and when they go upwards the Zambian will pay more for a commodity’’ Mr Mpenge said.

Mr Mpenge said citizens will now be compiled to adjust their budgets in advance.

He has further said that no money in liquidity is an indication that the speed  at money is found in circulation will be  reduced or it will continue cooperating at a low rate.

Mr Mpenge added if that happens the country will have few kwachas chasing the dollar.
He says the value for the money will reduce and this may affect a Zambian who may wish to buy products from other countries by  paying  more because of maintaining the exchange rate at a higher rate because there is no liquidity in the circulation.

‘’ the life of a common Zambian who wanted to order a vehicle from japan, instead of him paying less will pay more. He was clearing a vehicle at darsalam, instead of less money will pay more’’ he stated.

Mr Mpenge said there is still need of government to come up with immediate possible measures to arrest the continued escalation of prices of goods and services in the country.

‘’ I think there is still need for government to come up with immediate measures of trying to arrest the situation of trying to play the other way round. Play around the prices of goods and services’’ He said.

Mr Mpenge has suggested that government must hold stakeholder engagements and consider putting in place policies that will encourage production in the country.
Mr Mpenge says encouraging polices that will boost production which in turn will help in the reduction of prices of ensetial goods like meali meal in the country.

‘’and when we produce more, it means we will have more goods and service and when we produce more, we are pushing indirectly the prices of goods and services downwards’’ he said.

End/A .T/2019

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