Zambia inflation slows to near two-year low on stronger kwacha

Zambia’s annual inflation eased to an almost two-year low in August as a stronger currency helped curb import costs.

Consumer prices rose 12.6% compared with 13% in July, Acting Statistician-General Sheila Mudenda told reporters Thursday in Lusaka, the capital.

Annual food inflation decelerated to 14.9% in August from 15.3% a month earlier and non-food price growth cooled to 9.3% from 9.7% in July. Prices rose 0.5% in the month.

Africa’s second largest copper producer is reaping the benefits from jump in the price of the metal. That’s led the kwacha to appreciate almost 19% against the dollar this year, making it one of the world’s best-performing currencies tracked by Bloomberg.

The Bank of Zambia, which now projects inflation to fall within its 6% to 8% target range in the first quarter of 2026, held its key interest rate at 14.5% this month to further contain inflation.

It also projects it to average 13.3% in 2025, 7.7% next year and remain there through to the first half of 2027.

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