Zambia Inflation Rate Eases to Fresh 2018-Low

The annual inflation rate in Zambia softened to 6.2% in August 2026, a new low since February 2018, down from 6.5% previously. The headline is now closer to the lower bound of the central bank’s 6% to 8% target range, helped by the resilience of the kwacha. The pace of food-price growth slowed to 6.0% in August, from 6.4% in July, while non-food inflation registered only a marginal decline, easing to 6.6% from 6.7%. On a monthly basis, the CPI rose by 0.2% in August, the same pace as in the prior month. Zambians handed Hakainde Hichilema a second five-year mandate on 18 August, with the president securing 61.4% of the vote. Inflation fell from around 23% to 6.5% during his first term, its lowest level in almost a decade, while debt restructuring helped strengthen investor confidence.

Zambia’s annual inflation rate stood at 6.5% in July 2026, unchanged from the previous month. It remained the lowest reading since February 2018 and stayed within the central bank’s 6%-8% target range, supported by a sharp appreciation in the kwacha, which has gained nearly 18% against the dollar this year on the back of surging copper prices and government efforts to encourage local currency usage. Inflation was also contained by the government’s decision earlier this month to extend a fuel tax moratorium through September 30, providing some relief as renewed tensions in the US-Iran conflict raised concerns over higher global energy and fertilizer costs. Food inflation eased to 6.4% in July from 6.7% in the previous month, while non-food inflation accelerated to 6.7% from 6.0%. On a monthly basis, consumer prices rose 0.2%, slightly higher than the 0.1% increase recorded in June.

The annual inflation rate in Zambia eased further to 6.5% in June 2026, a fresh low since February 2018, down from May's 6.6%. Food inflation softened to 6.7% in June from 6.9% previously, while non-food inflation edged down to 6.0% from 6.1%, helped to a bumper corn harvest and the resilience of the domestic currency. At the same time, fuel taxes were suspended until the end of June under a government moratorium. The kwacha has strengthened nearly 20% this year, supported by copper mining inflows and progress in the restructuring of the national debt, helping to curb inflationary pressures. Zambia recently secured investor backing for a buyback of its $1.36 billion 2053 bond, aimed at reducing borrowing costs, strengthening public finances and expanding electricity access. On a monthly basis, the CPI edged up by 0.1% in June, following a 0.25 increase in the month before.