Zambia”s Inflation rate per year is at 47%-USA Economist
Zambia’s inflation rate is four times higher than what Bank of Zambia And Zambia Statistics Agency are portraying-USA Economist
An American economist has challenged the Zambia Central Bank to disclose the true rate of inflation rate in Zambia.
Dr. Steve Hanke an economist and professor of applied economics at the Johns Hopkins University in Baltimore, Maryland said according to his measurement, the rate stands at 47% per year, four times higher than reflected by Bank of Zambia.
He tweeted;
“Today I accurately measure Zambia ‘s inflation rate is at a PUNISHING 47%/yr — that’s nearly 4xhigher than the official rate.”
Bank of Zambia Gov.Dr.Denny Kalyalya
= MONETARY MISMANAGEMENT.
Steve H. Hanke is an American economist and professor of applied economics at the Johns Hopkins University in Baltimore, Maryland.
Zambia is a member of the IMF and the World Bank and has a price index made up of a range of goods with varying weights in the determination of the index. This information is also available to the WB and IMF. The goods are selected in terms of the number of people and industries that use them and how frequently they do that. The Zambian price index is not a state secret but public information. So it’s possible to reach agreement on this issue. The annual inflation rate is an average for the whole economy and therefore has errors in its determination. For example, if I run a cement factory, I can collect price information of key inputs during the year and strictly-speaking that is the inflation rate facing my business. Such an inflation rate will very likely not be the same as the official inflation rate. I think this is where the disagreement lies.
The man is just malicious when he personally attacks the Bank of Zambia Governor. He doesnt explain what and where Kalyelye has mismanaged the economy. He should be challenged to explain what he means by such unprofessional outburst.
Itsnt the US experiencing inflation? Pretty much all the countries in the world are experiencing an abnormal rate of inflation and this has been paroted by all leaders as effects of the CovId or the Ukrainian war to some measure or effect. The extent varies on how tied ones economy to these issues.
The said economist has said little or nothing validate his statement aside from disparage.
I think this economist has got a sinister agenda looking at his comment. Inflation is not measured on a single good but it’s an aggregate and averaged measure of price changes for a selected number of goods because during the same period some goods may increase in price and others may reduce, so aggregation and averaging price increases or reduction gives a much more realistic measure of inflation. The inflation rate reported by government has been checked by international organizations like IMF and world bank and they have not said anything different. His this economist saying all these organizations are hiding something or they don’t know what they are doing?
Most likely things are so bad
This economist is a pfidiot and they forgot to refer to him as a USA economist! Afuledi should’ve tried a Chinese economist for some semblance authenticity in this stupid story.
While inflation and the cost of living are high, thumb sucking figures from thin a is not economics. If he is truly an economics Prof, I am scared for his students. His simplistic views on how he came up with this figure will bring into disrepute with his employer. He has forgotten that, this could lead to a campaign to cancel him.
Actually what he is saying makes sense. Inflation in an import oriented country like ours relates to how much the currency depreciates and for sure the kwacha has depreciated around 47% to the dollar which is almost equivalent to the inflation rate.
Just look at any country with a similar economy to Zambia. Not one of them has an inflation rate anywhere near 50%. Not one.
What is the actual basis for his conclusion? I’m an Economist and see nothing to lead to this.