Despite Currency Gains, Inflation Remains Worryingly High

Although the kwacha has gained value this month, following a rise in copper prices, benefits are yet to seep through to society as inflation within the country remains worryingly high.

In July, inflation remained unchanged at almost 25%, with an increase in food prices driving the rise. Inflation on the price of food alone remains high and steady at 31.2%.

These figures come in spite of a jump in the kwacha this month which made it the best performing currency within the period. It gained 18.2% against the dollar, with the appreciation attributed to an improved foreign exchange supply due to soaring copper prices.

Speaking on the matter, central bank reminded citizens that monetary policy focuses on containing inflation to a level far below that which it currently sits at.

“It is important to note that monetary policy remains focused on containing escalating inflation back to the target range of 6-8% over the medium term,” they said.

Over the past 10 years, the Patriotic Front have promised to put “more money in your pocket”. In spite of this, they have successfully managed to do the opposite, making their citizens poorer as a result of increased food prices and lack of jobs within the country.

Photo: Bloomberg