Zambia Sees Inflation Fall to 12.3%

Zambia is experiencing encouraging economic progress with inflation continuing its downward trend for the third consecutive month, reaching 12.3 percent in September from 12.6 percent in August. This marks the lowest inflation rate in nearly two years, signalling growing economic stability.

The positive trajectory extends beyond inflation control. Zambia recorded an impressive trade surplus of K3.3 billion in August, a substantial increase from July's K400 million surplus, demonstrating strengthened export performance and improved trade balance.

The inflation decline is primarily attributed to a stronger Kwacha, which has effectively reduced import costs and eased price pressures across the economy. Zambia Statistical Agency's (ZamStats) acting statistician general Sheila Mudenda highlighted that both food and non-food items contributed to this favorable development, with annual food inflation moderating to 14.6 percent from 14.9 percent.

Looking ahead, the sustained slowdown positions Zambia favorably for potential monetary policy adjustments, with economists anticipating a possible interest rate cut in November. Projections suggest inflation could reach the target range of six to eight percent by the first quarter of 2026, while averaging 13.3 percent in 2025