Zambia Records First Inflation Decline in Over a Year
For the first time since July 2023, Zambia’s annual inflation rate has declined, offering some much-needed economic relief. Reports indicate that in March 2025, inflation dropped to 16.5%, down from 16.8% in February.
The announcement was made by Acting Statistician-General Sheila Mudenda on Thursday in Lusaka.
A key driver of the decline was a drop in food prices, particularly for essentials such as bread and cereal. This was largely due to increased rainfall following one of the worst droughts in nearly a century.
Food price inflation fell to 18.9% in March, down from 20.6% in February, according to Bloomberg.
While food prices eased, non-food inflation rose from 11.7% in February to 13.2% in March, driven by the 3% depreciation of the kwacha against the U.S. dollar. Overall, consumer prices increased by 1% during the month.
Last year, Zambia’s kwacha recorded its weakest performance in June, trading as low as 26.47 per dollar, according to Bloomberg. The country’s foreign reserves have been strained due to fiscal challenges and drought-driven food import needs.
Despite these challenges, Zambia’s government is banking on its mining sector for economic recovery. In January, Finance Minister Situmbeko Musokotwane emphasized that the country is relying on new mining projects and investment in existing operations to boost production and restore economic stability.
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