Economist and currency analyst at GCB Capital Limited, Courage Boti is hopeful of a sharper decline in the country’s inflation as he predicts the year 2023 could end with a rate of about 28 percent.
His comment comes on the back of a significant drop in inflation with the month of March recording 45% from the 52.8% recorded in February 2023.
This is the third consecutive month inflation has dropped in the year.
In an interview with Citi Business News, Courage Boti indicated that a resilient forex market and other favourable forces are crucial in sustaining the inflation decline.
“I expected a decline but much lower than we have seen. I was expecting a sharp decrease to start from April otherwise it is not a surprise of the third consecutive month of decline as we have experienced worse inflation in the past,” he said.
“At this pace and momentum we can expect a sharper decrease going forward, driven largely by current developments where we have seen at the last pricing window fuel prices have declined at the pumps and the exchange rate, although volatile has seen some trend of resilience,” he noted.
“So we are in that period where you will see that inflation will go down like it went up, and the expectation is that we could be ending the year around 28 or, 29 levels if everything holds constant,” he added.