Inflation Falls To 13% - On Track For BOZ Target

The annual inflation rate in Zambia slowed to 13% this month, down from 14.1% in June.

Slower price rises were observed for both food and non-food products across the Consumer Prices Index: a basket of commonly purchased products that economists regularly check for price changes.

Inflation peaked in February this year owing to the knock-on effects of the drought on food and energy prices. Experts now predict that inflation will continue to fall to single figures by the end of the year, meeting the Bank of Zambia’s target range of 6-8%.

The falling rate can in part be attributed to this year’s bumper maize harvest, with analysts predicting a total yield of 3.6 – 3.7 million tonnes for the staple crop. The record breaking harvest was supported by various government initiatives, including early maize planting, greater irrigation, and reforms to the Farmer Input Support Programme (FISP).