Cost of living drops as inflation slows in September

More indication of economic progress under President Hichilema

Inflation in Zambia has fallen to its lowest rate since 2023.

In September prices rose 12.3% compared to the same period last year, down from 12.6% in August and 13% in July.  

The downward trends have been reflected in both annual food inflation and annual non-food inflation coming down. This demonstrates that the cost of living for ordinary Zambians is gradually easing up.   

The Bank of Zambia predicts that the figure will fall into its target range of 6-8% in the first quarter of next year. Given the continued cooling of inflation, the bank may cut its key interest rate in November, making it easier for citizens and businesses to borrow money. This could stimulate further growth and investment in the economy.

The economic interventions by President Hichilema’s government have contributed to this positive inflation data. The strong performance of the Kwacha is one of the primary causes of this inflation drop. This in turn is linked to strong copper production which is set to exceed a million tons this year for the first time in a century. The Hichilema administration has made mining a key area for its economic growth supported by a bold target of 3 million tons per year by early next decade. The President has been praised for his business-friendly attitude, and the more stable policy environment has led to more investment.

The IMF forecasts 5.8% GDP growth for 2025, a significant improvement from recent downturns, demonstrating a positive outlook for the Zambian economy moving forward.