Zambia Records Lowest Inflation in Over a Year at 14.1% in June 2025
Zambia’s annual inflation rate for June 2025 has declined to 14.1 percent, marking the lowest level in 14 months, signaling a gradual return toward macroeconomic stability.
Economic analyst Kelvin Chisanga attributed the slowdown to declining food and transport costs, supported by the appreciation of the kwacha, which has gained strength from robust mineral exports and increased external financial inflows. The stronger currency has helped ease import costs and boosted overall market confidence.
Mr. Chisanga noted that seasonal availability of staple foods, improved domestic supply chains, and strong yields in cereals, legumes, and fresh vegetables have also contributed to easing price pressures across key commodities.
Despite this positive trajectory, the 14.1 percent inflation remains above the Bank of Zambia’s medium-term target range of 6–8 percent, indicating lingering structural and supply-side weaknesses.
Mr. Chisanga emphasized the importance of maintaining fiscal discipline and monetary policy consistency, alongside targeted investments in agriculture, energy, and logistics, to further anchor inflation and enhance economic resilience.
“As Zambia advances, policy consistency, productivity growth, and currency stability will be critical in preserving household purchasing power and achieving lasting price stability,” he said.
