Zambia Inflation Rate Slows Further to 6.1%

The annual inflation rate in Zambia eased to 6.1% in September 2026, the lowest level since February 2018, down from 6.2% in August. Food inflation slowed to 5.8% in September, compared with 6% a month earlier, while non-food price growth remained steady at 6.6%. A resilient currency and temporary tax measures have helped contain inflation in Zambia, with the fuel-tax suspension and zero-rated VAT set to expire on September 30. On a monthly basis, the CPI rose by 0.4%, the most in five months, after a 0.2% increase in the month before.

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.