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(LUSAKATIMES) ZCTU gives Banda kudos over inflation reduction

ZCTU gives Banda kudos over inflation reduction
Monday, July 5, 2010, 8:11

The Zambia Congress of Trade Unions (ZCTU) has said the historic annualised rate of inflation recorded during the month of June is a sticking point that President Rupiah Banda’s prudent economic efforts had exceeded the economic policy measures of the previous administrations.

ZCTU secretary general Roy Mwaba said in an interview in Lusaka yesterday that previous efforts had been consolidated to speed up economic growth coupled with high productivity but there was now evidence that the current Government was making the right decisions.

He said the combination of President Banda, Finance and National Planning Minister Situmbeko Musokotwane and Commerce Minister Felix Mutati had proved to be the best for Zambia.

Central Statistical Office director Effrida Chulu announced last week that Zambia has tapped a historic annualised rate of inflation at 7.8 per cent which was the lowest in three decades.

The drop in inflation was spurred by a decrease in prices of food such as mealie meal, fresh vegetables, and dried kapenta which helped push down Zambia’s annual inflation rate, to 7.8 per cent in June from 9.1 per cent in May.

Of the total 7.8 per cent annual inflation rate in June 2010, food products in the Consumer Price Index (CPI) accounted for 1.9 percentage points, while non-food products accounted for 5.9 percentage points.

The reduction in the annual rate of inflation as measured by the CPI was attributed to the downward spiral of prices for food items which include maize grain.

The only time the rate came down to about eight per cent was in 2006 when late President Levy Mwanawasa as in power.

Mr Mwaba said the Government now needs to work on measures that would ensure that sound economic figures trickle down the ordinary Zambians and the workers.

Mr Mwaba said the 15 per cent salary hike for public service workers was too low and it was important in future to consider a higher percentage to allow the workers benefit from the economic growth.

He said the 15 per cent salary rise was given just when the cost of fuel and electricity tariffs were increased which has left the workers with little benefit from their efforts.

Mr Mwaba said good economic decisions were historically very difficult to make but recent efforts had shown that the Government knows what was good for Zambia.

[ Times of Zambia ]

Labels: CORRUPTION, INFLATION, ROY MWABA, ZCTU

posted by MrK @ 5:25 PM