PANAPRESS
Panafrican News Agency
Zambia: Cost of living up in Zambia
Lusaka, Zambia (PANA) – The cost of living for the month of March 2014 for an average family of five living in the Zambian capital, Lusaka, increased by K71.44 from K3,616.28 in February to K3,687.72, the Jesuit Centre for Theological Reflection (JCTR), revealed Tuesday. (1USD =K6)
The JCTR attributed the increase mainly due to the rise in the cost of the country’s staple food, mealie meal, which increased from K68.00 to over K82.00 per 25kg bag of breakfast in some parts of the country.
“Mealie meal which is a staple food in Zambia must to be readily available to the greater majority of the citizens. However, during the month of March, the price of breakfast mealie meal sharply increased from ZMW68.00 to over ZMW82.00 per 25kg bag in some parts of the country, making it difficult for many to access the commodity,” the organisation stated.
“The high cost of mealie meal is very saddening and alarming especially for a country whose staple food is maize. The increasing systematic exclusion of families in accessing a 25 Kg bag of maize meal has been compounded by the reality that over 60% of the population is living in absolute poverty and depends heavily on maize and maize supplements for their dietary needs. Further, it has been observed that the price of mealie meal remains high despite the various interventions by the government.”
According to JCTR, the free falling Kwacha has also contributed to the high cost of mealie meal due to the increase in the cost of importation of production related inputs needed by millers.
This, it said has adversely affected people’s livelihoods and coping capabilities as it inadvertently pushes up the cost of production of goods and services thereby making the cost of goods and services beyond reach of ordinary citizens.
The organisation explained that the cost of living has generally increased owing partly to the fact that key accounts of inflation which include prices of basic food items and non food items have continued rising.
The Central Statistics Office (CSO) report for the month of March affirms that annual food inflation has risen by 0.1 percentage point from 7.5 percent to 7.6 percent while non-food inflation rate has increased by the same rate from 7.7 percent to 7.8 percent from February to March 2014.
This simply means that there is an upward thrust on the average prices of goods and services, particularly over the first quarter of 2014 as evidenced by both the rising cost of Basic Needs Basket (BNB) and the CSO Consumer Price Index (CPI) for the months of February and March 2014, JCTR stated.
“JCTR is concerned with the rising cost of living due to its adverse effects on majority of the citizens as evidenced by the failure of some families to meet the cost of a 25Kg bag of maize meal. Survey findings from peri-urban markets show that there is a sharp increase in demand for small unit repackaged mealie meal popularly known as Pamela. This is indicative of the systemic increase in the number of families living from hand-to-mouth in peri-urban areas. Local traders of the commodity justify the high prices on grounds that millers have not reduced the wholesale price despite government intervention.”
JCTR appealed to government to intervene, both in the medium and long term, in the rising cost of mealie meal, bearing in mind that maize pricing is overtly over-sensitive to market forces and weather patterns.
It also said government must ensure that the price of mealie meal should not increase any further as it will adversely affect and exacerbate the already eroded coping capabilities of the majority of Zambians who depend on this staple food and often have very limited escape opportunities from the poverty trap.
“Additionally, we urge the government to ensure a stable macro-economic environment buttressed on consistent and sound economic policies rather than political imperatives. We also add that the depreciation of the Kwacha must be squarely addressed as millers are transferring the cost to the consumers,” JCTR stated in its findings.
-0- PANA MM/VAO 15April2014
The JCTR attributed the increase mainly due to the rise in the cost of the country’s staple food, mealie meal, which increased from K68.00 to over K82.00 per 25kg bag of breakfast in some parts of the country.
“Mealie meal which is a staple food in Zambia must to be readily available to the greater majority of the citizens. However, during the month of March, the price of breakfast mealie meal sharply increased from ZMW68.00 to over ZMW82.00 per 25kg bag in some parts of the country, making it difficult for many to access the commodity,” the organisation stated.
“The high cost of mealie meal is very saddening and alarming especially for a country whose staple food is maize. The increasing systematic exclusion of families in accessing a 25 Kg bag of maize meal has been compounded by the reality that over 60% of the population is living in absolute poverty and depends heavily on maize and maize supplements for their dietary needs. Further, it has been observed that the price of mealie meal remains high despite the various interventions by the government.”
According to JCTR, the free falling Kwacha has also contributed to the high cost of mealie meal due to the increase in the cost of importation of production related inputs needed by millers.
This, it said has adversely affected people’s livelihoods and coping capabilities as it inadvertently pushes up the cost of production of goods and services thereby making the cost of goods and services beyond reach of ordinary citizens.
The organisation explained that the cost of living has generally increased owing partly to the fact that key accounts of inflation which include prices of basic food items and non food items have continued rising.
The Central Statistics Office (CSO) report for the month of March affirms that annual food inflation has risen by 0.1 percentage point from 7.5 percent to 7.6 percent while non-food inflation rate has increased by the same rate from 7.7 percent to 7.8 percent from February to March 2014.
This simply means that there is an upward thrust on the average prices of goods and services, particularly over the first quarter of 2014 as evidenced by both the rising cost of Basic Needs Basket (BNB) and the CSO Consumer Price Index (CPI) for the months of February and March 2014, JCTR stated.
“JCTR is concerned with the rising cost of living due to its adverse effects on majority of the citizens as evidenced by the failure of some families to meet the cost of a 25Kg bag of maize meal. Survey findings from peri-urban markets show that there is a sharp increase in demand for small unit repackaged mealie meal popularly known as Pamela. This is indicative of the systemic increase in the number of families living from hand-to-mouth in peri-urban areas. Local traders of the commodity justify the high prices on grounds that millers have not reduced the wholesale price despite government intervention.”
JCTR appealed to government to intervene, both in the medium and long term, in the rising cost of mealie meal, bearing in mind that maize pricing is overtly over-sensitive to market forces and weather patterns.
It also said government must ensure that the price of mealie meal should not increase any further as it will adversely affect and exacerbate the already eroded coping capabilities of the majority of Zambians who depend on this staple food and often have very limited escape opportunities from the poverty trap.
“Additionally, we urge the government to ensure a stable macro-economic environment buttressed on consistent and sound economic policies rather than political imperatives. We also add that the depreciation of the Kwacha must be squarely addressed as millers are transferring the cost to the consumers,” JCTR stated in its findings.
-0- PANA MM/VAO 15April2014
