The Bank of Zambia has predicted that the country’s inflation rate is expected to slow down during the second quarter of the year.
Bank of Zambia Governor Caleb Fundanga says the slowing down of the inflation rate will largely be as a result of an increase in the supply of fresh food with the onset of the 2009/2010 crop harvest period.
Dr. Fundanga however says the recent hike in fuel prices might lead to an increase in the inflation rate which will result in increased commodity prices.
Speaking during a quarterly media briefing in Lusaka this morning,Dr Fundanga added that preliminary data shows that Zambia recorded an overall balance of payment deficit of 81.4 million untied states dollars during the first quarter of 2010 compared with a surplus of 18.2 million United States dollars in the previous quarter.
He adds that during the period under review, the current account deficit narrowed to 25.1 million United States from 113.3 United States dollars million recorded in the previous quarter.
He states that this was largely due to a reduction in the income account in the account balance following the decline in income on equity payments.
The central bank governor further revealed that the merchandise trade surplus increased by 35.4 percent to 368.5 million United States dollars in the first quarter of 2010, from 272.2 million United States recorded in the fourth quarter of 2009 mainly due to an increase in exports.
QFM
He shouldnt say it ‘MIGHT’. It defnitely will lead to increased Inflation. PERIOD!
Wow, look at the numbers! Current A/C deficit low , trade surplus on the upswing. This economy is on fire and in so soon a future these numbers will start to trickle down. I bet all Kaponya wont understand anything the Governor has said. All they know is how run the BOZ print press to print money for all Zambians in 90 days. These are a set of strong numbers and numbers don’t lie. This economy is firing on all cylinders.
Numbers Don’t lie
#1 My friend he is right, might is the right word. Think in probabilities if you want to be successful in economics and financial matters. These areas are not really a science, but an art. remember everybody predicted that the world will be deep in inflation after the bailout of US banks? Look today inflation around the world is still benign. There is a big know unknown when it comes to money velocity. The system can have money but if the velocity of that money is small, then inflation is bound to remain mute. Money velocity is a big factor in the cause of inflation, so the Governor is right in saying, might.
Might lead to inflation? Very funny Mr BoZ man!
his my inspiration. people leave him alone his only used just like mutati. mutati 4 presidence.
MMD chief bootlicker, you are putting a smile poverty. You’re that i.d.i.o.t.s that nil to RB due to desperation for cash. you snub at everything and you think your the best. Never my f u c k e n damp. One day your joys will be tears. i hope you are using your ferocious earnings wisely. Time is catching up with you and your berries will tarnish.
As ACCA and BSc Hon in Acc qualified I do not agree with this MMD fool no.3 , please understand that your kwacha will be worthless soon as the inflation sky rocketing .Do you know what it means all commodities prices will go up land lords will increase their rentals , cummuters will suffer more.YOU FOOL CHIEF BOOTLICKER you can’t just reason! go back school,what kaponya are talking about?in fact you luck to there in America.
#6 & #7 you can’t reason and just debate me on the points I raised but just throw insults. Typical of Kaponya mentality and #7 with your qualification from Matero University, please just go to the prostitute story on the other thread. That is the language you understand and thrive on. Don’t embarrass yourself by comment on issues beyond you because you brain just jams and start releasing insults and making you look like a demon possed fellow. Debate me on the point I have raised. No insults please.
Good Afternoon ladies and gentelemen!
Given this uncomfortable truth regarding the hikes in the fuel prices, I wonder how (and if at all!? our goveritment is preparing itself for the future de-fuelisation and electrification of the drive-system?
Those of us here are witnessing at first hand, as in times past, how the white man (or European if you like) is still a step ahead of us by developing hybrid technology. They’re making notable progress too. Mercedes Benz and Evonik have just built Europe’s biggest factory for lithium-ion batteries in the city of Kamenz, in the German state of Saxony. They will soon set up hydrogen filling stations for battery-powered vehicles all over Germany, while we still queue up for diesel and petrol!
# 7 UPND/PF CHIEF,
Can we have a benificial debate, some of us do not understand economics as do many pact kaponyas. I MMD Chief Bootlicker is waiting for a debate that will benifit many of us pleas no insults and threats of violence.
Iwe, you think your ACCA qualification gives support to your argument? Ulei bwelamo. Everybody has ACCA nowadays, its nothing out of this world.
Pleas Pact followers, MMD Chief Bootlicker including me, i do not hate RB but hate the alternative, who can not even come up with figures refuting allegations that their councils are not delivering, are asking for constructive contributions to what is presented. Not just trying to flash titles like ACC or like Sata with a degree that has no name. Pleas lets debate.
#2; Numbers don’t lie? Go and take an accounting class, my friend. Not an intro class, Principles of Accounting on up, where you will be crunching numbers and knowing why. Numbers do lie! In fact numbers are relied on to lie more than anything else!
UBUTUTU MULEKE!
#10 kc, you make a great call, like wise person would in #10 and then you turn around and shoot yourself in the butt in #12.
Funny that you are continuing with your ‘where are the council figures’ ignorance. Read the article in today’s post about what the people of Luapula are asking FTJ. Study the range of questions they are putting to Chiluba and see if you can find the poverty of thought exhibited in your argument in your quest for numbers from people WHO SHOULD NOT BE ANYWHERE NEAR THE MONEY.
UBUTUTU MULEKE!
# 3 I do not seem to agree with your sentiments. First I dont understand how the governor or is it the reporter says the current account deficit has gone down due to reduced income from equity. Isnt reduced income from equity supposed to have the opposite effect. I beg to be corrected. Secondly I agree with the governor that inflation I only hope he could advise those that implement government policies. Third, the trade surplus is due to increased copper sells but where is the money for the copper banked. How much tax is slumped on the revenue from copper. It doesnt make sense to celebrate over something that doesn’t benefit you
# 15 Cont’d…thats more like celebrating that someone in your household is now getting a fat pay when your benefit from the fat pay remains the same as when the person was getting pennies. Numbers should always trickle down to the ordinary people, raise their standard of living, standard of education in government schools, increased manufacturing companies, job security, better health care…..without these changing the numbers are just some crap….serious crap
# 13 Bugsy
Stop behaving like that sewer rat from the other thread who thought MPs should just “Executivly legislate…”, even though developmental projects they promised are not seen. The figures are presented above, what is wrong with them ?. Or what is right with them. dont just criticise.
Guys, we don’t all need to be economists or accountants to know andn realise that, an increase in fuel prices has a spiral effect on the prices of all other commodities and this ll ultimately increase the inflation. It has awlays happened that way and always will
Even recently in thwe UK where inflation really dropped in the past year, this year’d first quarter saw a sharp jump and it was put down to the increase in fuel prices.
So MMD *ss licker please spare me that hopeless hypothesis!
In the 1970s it was true that the link between oil prices and inflation was more or less linear. This is noit the case nowadays and the data from the oil price spike of 2007 clearly shows this. Given that Zambia is a none oil producing country the most rational alternative is for petroleum product prices to closely follow global market trends. Anything else will lead to a localised price spike sooner or later. In RSA prices fluctuate every month and in Tanzania, Uganda and the United Kingdom prices can change at any time as the suppliers respond to the global market. In all these cases you wo not get a large price increase or decrease and a sembelence of stability is assured. Of course others will say subsidise, but it is generally silly to subsidise consumption….
MMD Chief Bootlicker
You are good at economics and financial matters, but you suffer from one useless deacease (Kaponya). You always arritate. Please be matured. PF, MMD, UPND and other parties we are all Zambia and brothers and Sisters. Stop finger pointing. We all buy from some shops, markets, hospotal. I have never seen Market where MMD only get food.
If you want to educate as Lawyers try to be objective and politically always
MMD Chief Bootlicker
Meant Not Politically always
# ANTIE THIEVES
Point taken. Sleep well and happy blogging
#17 kc, I have found an ignoramus friend in you. The BoZ governor is right. When you increase the price of fuel, a critical input in all production processes, it sets off a ripple effect through the entire economy. When the global economy is in the doldrums, causing an increase in the average price level is the last thing you want to see. End of lesson in macroeconomics for today.
Now kc, my ignoramus friend, go and read the article in the Post. I did not write it but it underscores the point I was trying to inject in your pinhead.
Last effort here. Yes, MPs will make promises, to speak on behalf of their constituencies; ensure the allocation of resources is fair and equitably represented in the Budget. After that the Budget becomes law. You with me so far?
The law is handed to the Executive to implement. Now from your civics class (3 organs of the GRZ) the Executive is the President of the Republic of Zambia. The president distributes the cash in accordance with that law. makes sense thus far? It is against the constitution for the president to give funds to MPs. It is however the duty of the MPs to continue asking the President to present a report, again, speaking on behalf of people, as to the status of the programs and projects enumerated in the Budget.
Zambia is a constitutional democracy, kc. There is order to its operation, or must I say there should be order.
UBUTUTU MULEKE!
” Might” statement is not correct. It will increase the inflation is correct.
When the inflation rate goes down, there are some who alway say ‘you cant eat inflation and that it does not make a difference’. If you take that argument to its logical conclusion, then the fact that inflation might rise should not make a difference.
23 Bugsy, bugsy, bugsy
No were did i say the cash For projacts is paid directly to the MPs. Were ever it is paid, they have the responsibility of making sure the money is spent according to what it was relised for, in the kanyama case JCs responsibility was to make sure the drinage, which he promised, was done for which cash was paid. Who do you expect the poor flooded residents to complain to ?? RB in your case. MMD will just say the cash was given. You see, illussions of grandour brought about by thinking you are more educated then the rest makes one more like a sewer rat that licks its self clean, yet still feeds from the sewer
fundanga, happy zambian, na poverty taishiba. richer than the president.lol. life, life,
kc#27: clap clap clap.
Listen for the last time, my ignoramus pal. Every society, every organization has a way of doing things. In corporate world the processes are delineated in what is called the Standard Operating Procedures (SOPs). This tells you how things SHOULD be done.
Your suggestions, my ignoramus pal, go against the grain (SOPs).
People are supposed to complain to the President. He is the one that is supposed to do it! Get it!
“MMD will say the money was given.” Given to whom?
I can’t state this clearly enough: It is the job of the president to implement the plan that bore the budget (Funds).
Know this and go teach your auntie in Chibolya, too. This is the right way of doing things. The constitution says so.
UBUTUTU MULEKE!
kc, nowhere did you say the money is given to the MP, but you fail to say who it was given to and by whom. In management they say, “Accountability = Responsibility + Authority”
The President, if you must know, has both the responsibility and authority. That makes him accountable. Recall you were having difficulties explaining yourself on the foregoing….
JC’s job was to ensure that the drainage project was included in the budget prepared by the MoFED presented to Parly by the Minister of Finance. Pay attention, kc, my ignoramus pal. After funds have been allocated to the project, the heat is on for the president to get things done. Bola panshi!
UBUTUTU MULEKE!
OK was distracted on this thread yesterday by the usual people. Anyway to just expand on my point about why the Governor’s use of MIGHT is correct is because Price is really the by product that makes us say inflation is gone up. And the price equation is Price = Money Supply X Transaction Velocity . More money in circulation chasing the same number of goods at an increasing velocity leads to inflation. The price of any anything is a function of how much money we throw at it and how fast we throw it. This is easy to understand if you imagine an auction. Price will only go up if people bid up even if they show up with loads of cash. So the word might is correct. Yes, the Odds of inflation are higher but not Definitive.
So the Governor is RIGHT. MIGHT is the word.
# 31 .Please lets not waste time getting info from basic economics books to qualify points. As learned cadres you must explain advantages and disadvanges of this increase. To you anyone against the MMD is a Kaponya. What type of leaders are you who dont want to be critisized?
# 31….ha ha ha ha I like that term Transaction Velocity! why not just say Demand
Only an educated leader can understand this. A std 3 drop out would find it very hard to understand that Zambia is doing well with an increase in trade surplus.
The harvest of maize in surplus will reduce prices thus lowering inflation. But this may be counter acted by the increase in fuel price, which may show only a slight change inflation. As FDI complete the externalization of their matured bonds, the Kwacha will begin to appreciate by June. This will reduce the cost of procuring fuel stocks and a decease in pump prices will be eminent.
Its a bit confusing to hear that inflation will drop and at the same time its likely to rise due to increased fuel price. So what is the overall net effect?
Bugsy
you do not get any work done just quoting the constitution and blaming the presido. In your life, MPs have the easiest jobs, promise development and not worry if the development is deliverd. That is the pact way of thinking. MMD MPs promise projects and make sure the projects are being worked on. Just stay were you are, we need accountability of our elected members of parilament.
The hike in fuel price is an indicator of what is happening in the global economy. If we have to tackle these price increases there is need to be well prepared. The debt problems in Greece and fraudulent behavior of Goldman Sachs personnel and other US multinationals are filtering through the fragile global markets where countries still have huge debts and weak financial institutions suffered from the first bout of financial craziness of 2008/2009. Instead of the BOZ and MoF concentrating more effort on the ‘Might increase inflation’ let them look at and find solutions fast on how we are going to stabilize our mines (mind you an exchange rate of K5, 100/US$ last week was as a result of the Greece debt problem as above) , our impoverished households and employment in the event that…
Cntd #37
this looming threat on the global economy comes to pass.
kc#36: Where am I?
My ignoramus friend,
The constitution is a set of guiding principles of any civilized nation. It embodies the dreams and aspirations of a people. Without it, you have a country like ours that is endowed with abundant riches yet its people wallow in untold poverty. Your “3rd” republican president draws authority from it. It permits the formation of government and prescribes how it should run.
Give me a list of viable projects successfully implemented by the MMD MPs and I will give you a laundry list of cases of documented gross mismanagement, waste of resources, corruption, and lack of political will; a tall list of failures called leaders on both sides of the political divide.
UBUTUTU MULEKE!
# 39 bugsy,
You are in Zambia ? Nowonder Projects are not completed if we have pipo like you there who qoute the consitution day and night yet the hrs are slipping and nothing is done. The “”that job can not be done beause according to the consitution…..it not my responsibility…” , yet pipo voted foryou on the premise that you will do it, is what is killing development. We need hands on mangers and law makers not the MPs of your books who hide behind the consitution and are not responsible for their promises to see development they promised is done. The MPs just watch as projects they promised in their areas are not done ! astounding .
Bugsy,
i do not know what sewer you and your local MP live in, but ” A member of parliament is chosen by the voters in their local constituency to represent them in Parliament….It is the duty of members of parliament to represent their local community in Parliament by raising issues and concerns that affect their community, bringing them to the attention of national government. Many people who have a problem or concern about life in their local area will make efforts to contact their local member of parliament who is obliged to take action. ..” my be to you floods in kanyama do not affect the pipo.
Now if the not done drinage that was paid for in Kanyama is not JCs problem , we are in trouble.
kc #40 & 41:
My ignoramus friend, you know what you said to be true because they are written in the constitution.
Reread your posting:
Q: Who is the national government?
Are you now admiring my sewer locale? It is nice and warm over here.
Look my ignoramus friend, MPs do feel obligated because your ministers are busy sending off or welcoming your president Vasco da Banda. Others are at Morningside or Milpark clinics.
In your view, what happens when parliament is dissolved. Who job is it to ensure roads are maintained, ***drainage is operable*** safety on the streets is guaranteed? Don’t the names Mangani, Mulongoti and Mutati come to mind? Well, guess what? They are responsible at all times.
UBUTUTU MULEKE!
Bugsy.
“… It is the duty of members of parliament to represent their local community in Parliament by raising issues and concerns that affect their community, bringing them to the attention of national government…”
In that case Opposition MPs do not report things affecting their pipo because they are busy insulting and listening to kaponya targeted speaches by sata and Fr frank or admiring how expensive their cars are. they must be complicite in chewing funds that are paid for projects and service delivery, thats why we do not have any of them refuting allegations or hear them knocking on local goverments doors day and night if they feel work is not being done