President HH Says Discipline Is Paying Off as Inflation Falls to 6.2%, Whilst Prioritising Lower Prices and More Jobs in Second Term

Zambia's annual inflation fell to 6.2 per cent in August from 6.5 per cent in July, the Zambia Statistics Agency said on Thursday, keeping the rate inside the Bank of Zambia's 6 to 8 per cent target band.

State House said the figure, together with strong demand at this week's government bond auction, showed growing investor confidence in the country's economic direction. Inflation stood at 23 per cent when the administration took office in 2021, according to State House.

The auction, the first since the 13 August general election, drew bids 37 per cent above the K6.3 billion on offer. Demand was strongest for the seven-year bond, whose yield fell by more than a percentage point from the previous sale, lowering the Government's cost of borrowing.

President Hakainde Hichilema said: "Lower inflation means your money goes further. Lower borrowing costs mean Government can do more with what it has. Both are the result of the hard choices we have made together over the past five years, and both tell us that the discipline is paying off."

He said pressures remained. "Many families are still feeling the pressure of high prices, and too many of our young people are still looking for work." The second term would focus on the cost of living and job creation, he added, and "every decision this Government takes over the next five years will be measured against those two tests".

State House said the response to the auction reflected confidence in Zambia's stability and reforms, and would feed through to lower prices, cheaper credit and more employment.