Zambia’s Inflation Falls to 10.9% as Fitch Upgrades Rating, Says EAZ President
The Economics Association of Zambia (EAZ) has welcomed the 1-percentage point drop in Zambia’s inflation in November, signalling positive momentum for the country’s macroeconomic stability.
According to EAZ, inflation declined to 10.9% in November from 11.9% in October, driven largely by non-food items such as fuel, airfares, vehicles and paraffin. The association projects that inflation will average around 7.5% in the first quarter of 2026, with further reductions expected throughout the year.
“This decline strengthens household purchasing power, supports disinflation, and lowers nominal yields, while reinforcing policy credibility,” said Dr. Oswald Mungule, President of EAZ. EAZ noted that appreciation of the Kwacha and a tightening of real monetary conditions contributed to this positive trend.
The inflation decrease coincides with Fitch Ratings’ decision to upgrade Zambia’s Long-Term Foreign-Currency Issuer Default Rating to B- from Restricted Default, with a stable outlook. Fitch highlighted Zambia’s near-completion of external debt restructuring and normalised relations with commercial creditors.
EAZ said the upgrade is expected to lower borrowing costs, improve access to international capital markets, and attract private investment. The association projected real GDP growth of 6.7% in 2025, higher than Fitch’s 5.2% forecast, driven by mining, manufacturing, including electric vehicle batteries, tourism and agriculture.
However, EAZ cautioned that risks remain. “Although the upgrade is significant, B- remains a high-yield rating. Election-related uncertainty in August 2026, external shocks, and execution risks could affect sovereign spreads,” Dr. Mungule added.
The Economics Association of Zambia emphasised that sustaining reform momentum and fiscal discipline will be crucial to maintaining macroeconomic stability and further supporting private sector confidence.
