ZACA says February inflation rates fake, cost of food has not dropped

The Zambia Consumer Association ZACA has disputed the February inflation figures released Thursday by the Central Statistical Office (CSO).

ZACA Executive Director Muyunda Ililonga says the situation on the ground is different from what CSO is releasing adding it is not true that the cost of food items has dropped.

Mr Ililonga has advised CSO to begin giving realistic figures that correspond with the situation on the ground.

He cites mealie meal, bread, sugar and cooking oil as some of the food items whose prices have remained the same.

According to the government department CSO, Zambias inflation slowed to its lowest rate in at least 10 years this month, to 6.0 percent year-on-year from 6.4 percent in January mainly due to food costs, the Central Statistics Office said yesterday.

CSO Acting Director Goodson Sinyenga told a media briefing in Lusaka that the decline can mainly be attributed to the reduction in the annual rate of food, non-alcoholic, transport, housing, water and electricity among others.

Mr Sinyenga said the annual food inflation was recorded at 5.5 percent in February representing a decrease from last months 6.1 percent.

Zambias inflation has been on a declining trend and Februarys rate marks the lowest since at least January 2002, according to all the available data on the CSO website.

The CSO also said Zambias trade account recorded a surplus of 269.3 billion kwacha ($51.39 million) in January compared with a 475.9 billion kwacha surplus in December 2011.

[FlavaFm]

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