Bank of Zambia Governor Dr. Denny Kalyalya has revealed that the third quarter (July to September 2021) average inflation went up by 0.2% to an average of 23.7% mainly due to food inflation which went up to 30.8% from 29% in the previous quarter .
Dr. Kalyalya stated in his Monetary policy committee statement availed to the Zambian Business Times – ZBT that Supply constraints led to notable increase in prices for meat and poultry products. He however stated that non-food inflation declined in the third quarter.
A review by ZBT of the meat products market reveals that major meat retailers such as Zambeef, Real meat and other retailers had indeed increased meat prices. The price increases had at the time been attributed to increase in stock feed prices, which were passed on to final consumers.
For the poultry products market, a ZBT review further shows that there was an escalation of prices for day old to an extent of creating national shortages. Most poultry farmers reported of their orders not being met as day old chicks suppliers opted to export for better prices and returns.
The poultry retail price hikes were also linked to stockfeed price escalation. The poultry prices were hit by a twin cost escalation of day old chicks and stockfeed whose additives and supplements were reported to have experienced price increases on the back of the depreciation of the Kwacha.
A deeper analysis of this two industries will lead you back to the depreciation of the Kwacha as major industry players told ZBT that it was the imported contents of stockfeed as well as parent chickens stock for poultry which were sighted as the causers of the price increases.
The Zambian Business Times – ZBT has been on record challenging the ministry of finance and its related institution, the Bank of Zambia to come up with a more practical way to manage the Kwacha and save the Zambian economy and the majority of its humble citizens from having their incomes and assets from perpetually losing value from a depreciating currency.
The perpetual depreciation of the Kwacha is perhaps the single biggest monetary policy failure that continues to drag down the country. The Kwacha depreciation eats away spending power and value of incomes. For those that own houses and other assets that are denominated in Kwacha, their international value of their assets are devalued overnight and everyday as the Kwacha depreciates.
