‘Falling inflation yet to benefit ordinary citizens’

By NATION REPORTER

THE downward trend in inflation has not yet translated into reduced prices of goods and services, leaving consumers still grappling with high living costs, says the Zambia Consumer Association (ZACA).

ZACA executive director Juba Sakala says while inflation was easing, it only reflected a slowdown in the rate at which prices were rising, and not an immediate reduction in existing price levels.

Mr Sakala explained that the persistently high cost of production continued to drive consumer prices, as manufacturers and retailers were still facing higher expenses.

“These costs are inevitably passed on to consumers, thereby offsetting the benefits of declining inflation,” he said.

Mr Sakala cited key cost drivers such as fuel, electricity, transport, raw materials and financing as major factors keeping prices high.

He has since urged Government to prioritise measures aimed at lowering the cost of production to deliver meaningful relief to consumers.

“This includes stabilising fuel prices, improving energy supply and affordability, enhancing local production of raw materials, and offering targeted tax incentives to producers,” Mr Sakala said.

He said addressing inefficiencies in transportation and supply chains would also play a critical role in easing cost pressures.

He also called for strengthened competition and monitor market practices to ensure that any reduction in production costs was fairly passed on to consumers.

“Sustainable price relief for consumers will only be achieved when the underlying cost of production is reduced,” Mr Sakala said.