Inflation Falls to Lowest Level Since 2018 as Economy Surges 7.7 Percent in Q1

Zambia's annual inflation rate eased to 6.5 percent in June 2026, down from 6.6 percent in May, marking the lowest level since early 2018 as price growth softened across the economy, whilst GDP growth expanded by 7.7 percent in the first quarter of this year.

The Zambia Statistics Agency said the moderation in inflation was driven by movements in both food and non-food items. Food inflation slowed to 6.7 percent from 6.9 percent, while non-food inflation eased to 6.0 percent from 6.1 percent. The easing in food prices offers welcome relief for ordinary Zambians, with the cost of everyday essentials beginning to come down. Statistician-General Sheila Mudenda said the improvement was largely influenced by price movements in commodities such as cereals, cooking oil and eggs, alongside transport, fuel and accommodation costs. On a monthly basis, prices rose just 0.1 percent.

Speaking to reporters in Lusaka, Ms Mudenda also announced that the economy expanded by 7.7 percent in the first quarter, a sharp acceleration from 1.6 percent in the previous three months.

Agriculture, forestry and fishing remained the largest driver, contributing 1.5 percentage points to overall growth and underscoring the sector's continued dominance. Wholesale and retail trade, information and communication, transport and storage, and manufacturing each added around 0.5 percentage points, with mining, financial services, construction, and accommodation services also recording moderate gains.

The figures reflect a broader recovery. As Africa's second-largest copper producer, Zambia is benefiting from a rally in the metal's price, which has helped the kwacha appreciate more than 22 percent against the dollar this year, making it the best-performing currency tracked by Bloomberg.