SOON, ZAMBIANS WILL FEEL EFFECTS OF REDUCED INFLATION – HH’S ECONOMIC ADVISOR
Jito Kayumba, the economic advisor to President Hakainde Hichilema, wrote:
The falling rate of inflation excites us because it means that the rate at which the cost of goods rises, is falling. It also means that the rate at which your savings are eroding is falling too.
One of the basic things you learn about investing is that your return must always beat inflation. For example, if your investment gives you a return of 20% when inflation is 15%, you’re only making 5% in real terms. Lower inflation means better returns. This will trigger more investment!
Soon, the people of our country from all walks of life will feel the direct effect of reduced inflation in addition to the new income the government is unlocking by facilitating investment.
We are cognisant of the inflationary effect of the rising fuel price but efforts to mitigate it are being made in view of the global factors at play.
Jito