Inflation Drops to 7.5% in February: one of the sharpest declines in years

Zambia’s inflation is set to drop to 7.5% in February from 9.4% in January this year, representing a near-halving of inflationary pressure since the March 2025 peak of 16.8%. This is the most significant month-on-month decline in recent memory and brings inflation firmly within the Bank of Zambia's 6–8% target band for the first time since 2019.

The continued strengthening of the kwacha against the US dollar has reduced import costs, while a favourable agricultural outlook following improved rainfall has eased food price pressures. The Bank of Zambia's measured monetary policy tightening over the past two years is now bearing fruit.

For ordinary Zambians, single-digit inflation easing toward 7% means the cost-of-living squeeze is loosening, with food prices, transport and household goods stabilising. For investors and the business community, it signals macroeconomic credibility and strengthens the case for further interest rate reductions following the Bank of Zambia's decision to cut the policy rate to 13.5% in February. As borrowing costs fall in step, cheaper loans become more accessible to small businesses, opening the door wider for young entrepreneurs looking to build and grow.

Combined with projected GDP growth of 6.4% for 2026 and continued progress on debt restructuring, this inflation trajectory strengthens Zambia's recovery narrative and reinforces the country's standing with international creditors and potential investors.