Zambia's annual inflation rate soared to 9.3 percent in August 2019 from 8.8 percent in the previous month. This is the highest inflation rate since October 2016, mainly due rising food prices (10.3 percent vs 9.3 percent in July), amid the worst drought in almost four decades. In this regard, the Agriculture Minister Michael Katambo announced on 25th August, the introduction of a cap on the price of maize to keep the staple food affordable, after prices have reached a record high this year. This sparked farmers’ protests accusing the government of bringing back price controls. On the other hand, inflation remained steady for non-food items (at 8.3 percent). Month-on-month, consumer prices inched up 0.7 percent, after a 0.5 percent gain in the prior month. Inflation Rate in Zambia averaged 9.68 percent from 2005 until 2019, reaching an all time high of 22.90 percent in February of 2016 and a record low of 6 percent in December of 2011.
Inflation Rate in Zambia is expected to be 9.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Zambia to stand at 8.50 in 12 months time. In the long-term, the Zambia Inflation Rate is projected to trend around 8.30 percent in 2020, according to our econometric models.