Inflation to drop to 8.7%

The Bank of Zambia has projected that inflation will drop to 8.7 percent before the end of the year.

He attributed the projected decline in inflation to improved supply of food during the harvest season and relative stability in the exchange rate.

Dr. Kalyalya says the 9.7 percent forecast increase in maize output for the 2015-2016 production season as announced in the recent crop survey results should assist in moderating food inflation.

He was speaking at a media briefing held in Lusaka Tuesday.

The central bank says further expects inflation to average 20.3 percent by next month.

BOZ Governor Dr. Denny Kalyalya says by September inflation is expected to drop to about 17.7 percent.

Meanwhile Central Bank has maintained the Policy Rate at 15.5 percent.

Dr. Kalyalya says the Monetary Policy Committee decided to maintain the policy rate after considering the stability of the exchange rate and expected drop in inflation.

Dr Kalyalya has also projected that Zambia’s economy will rebound to a 6 percent this year in view of projected global growth of over 3.2 percent according to the International Monetary Fund.

ZNBC