Government’s efforts to address the high cost of living has faced hurdles as the cost of living continues accelerating.
According to the October report of the Jesuit Centre for Theological Reflection – JCTR, the cost of living for a family of five in Lusaka has increased to K9, 294.76 In comparison to the recorded figure of K9, 146.06 in September 2023 which signifies an increase of K148.70.
This contradicts governments efforts of working towards arresting the high cost of living.
According to the JCTR report made available to the Zambian Business Times – ZBT, the report revealed an increase in food items such as roller mealie meal beans, kapenta, charcoal and a decrease in fruits such as mangoes, oranges and apples.
Last month, Zambia witnessed its annual inflation rate increase for the fourth consecutive month, reaching 12.6% which marked the highest inflation rate recorded since March 2022, surpassing the 12% rate observed in September 2023. This will have negative effects on a number of households who are already struggling with transport and other essential commodities that have gone up.
“The persistent issue of the cost of living in Zambia has been a recurring concern for the nation. Citizens have grappled with the challenges of affording basic necessities including mealie meal, and this longstanding problem continues to be a focal point of public discourse and policy considerations. It is essential to closely monitor factors such as inflation, fluctuating commodity prices, and overall economic conditions. In October 2023, Zambia witnessed its annual inflation rate increase for the fourth consecutive month, reaching 12.6%. This marked the highest inflation rate recorded since March 2022, surpassing the 12% rate observed in September 2023. The primary driving factor behind this inflation surge has been the continued depreciation of the Zambian kwacha, which has impacted the overall pricing dynamics within the country,” revealed the report.
JCTR noted that despite the ongoing endeavours by the government to alleviate the high cost-of-living, pressures continue to encounter formidable challenges.
“Economic instability, external shocks affecting prices of essential commodities such as fuel, and increased vulnerabilities have combined to create a complex landscape. These hurdles necessitate a comprehensive and adaptable strategy to safeguard the well-being of the populace and set the stage for enduring solutions. In light of this, JCTR recommends implementing the following measures, in addition to those already in effect, to tackle the high cost of living: Government should proceed with its plans to distribute maize grain directly through the reserve agency to communities as a short-term measure to mitigate the impact of the rising cost of mealie meal. It is key that the most vulnerable communities across urban, peril-urban and rural areas are targeted. However, it is crucial that this effort is accompanied by a long-term strategy to enhance domestic maize production and food security, as sustained and affordable access to staple foods should be a fundamental goal for ensuring the well-being of all Zambians,” JCTR suggested.
“However, it’s worth noting that the proposed 2024 national budget lacks measures to scale up the cash transfer value. Government working through the Energy Regulation Board, should take immediate action to address the high fuel prices, as it is crucial for economic stability. Despite having implemented cost-reflective tariffs in the energy sector, it would be beneficial for the board to explore innovative solutions and run simulations to assess the impact of reverting to a 90-day fuel price adjustment mechanism. The JCTR’s Basic Needs and Nutrition Basket Surveys consistently highlight how fuel price volatility significantly affects commodity and service prices in the market. Achieving stability and predictability in fuel prices is essential to prevent these costs from being passed on to consumers,” suggested JCTR.
JCTR therefore encouraged the government to expedite its process in addressing the high cost of living.