Zambia’s Inflation Falls to 12.3% as Economy Shows Signs of Stability
Zambia Records Lowest Inflation in Two Years and Strong Trade Surplus
Zambia’s economy is showing encouraging progress, with inflation declining for the third consecutive month. In September, the annual inflation rate fell to 12.3% from 12.6% in August, marking the lowest level in nearly two years and signaling improved economic stability.Strong Trade Performance
Beyond inflation, Zambia is also recording gains in external trade. In August, the country achieved a K3.3 billion trade surplus, a sharp rise from July’s K400 million surplus. This improvement reflects stronger export performance and a healthier trade balance.
The fall in inflation has been largely driven by a stronger Kwacha, which has lowered import costs and eased price pressures across the economy. According to Zambia Statistics Agency (ZamStats) Acting Statistician General Sheila Mudenda, both food and non-food items contributed to the decline.
Annual food inflation eased to 14.6% in September, down from 14.9% in August, reinforcing the positive trajectory.
Economists suggest that Zambia’s sustained slowdown in inflation could pave the way for monetary policy adjustments, including a possible interest rate cut in November.
Projections indicate that inflation could reach the target range of 6–8% by the first quarter of 2026, while averaging 13.3% in 2025.
With inflation easing and trade performance strengthening, Zambia appears to be entering a period of greater economic stability. Continued fiscal discipline, currency resilience, and export growth will be key to sustaining this momentum and achieving long-term price stability.
