The dividends of our ongoing macro-economic stabilization programme have started yielding positive results. One critical fundamental that has so far responded positively is the inflation rate, which has reduced to 15.1 percent in January 2022 from 16.4 percent recorded in December 2021. On track to achieving a single-digit inflation rate by the end of the year.
The continued reduction in the inflation rate is supported by the stability in the price of many goods, stable exchange rate, and the confidence stakeholders have in our capabilities to manage the economy and bring normalcy. The situation where people’s incomes or salaries every month are buying fewer goods and services each time the rate increases will soon be over.
Going forward, as we race to a single-digit inflation rate, the benefits that will accrue to our citizens include the following: (i) stable and predictable prices of goods and services; (ii) as prices become stable, our people’s incomes will not lose its purchasing power, and (iii) eventually even interest rates will become stable meaning people can have access to cheaper financing to improve their businesses and welfare.
President of the Republic of Zambia