LUSAKA, Aug 27 – Zambia’s annual inflation rate fell to 6.2% in August, reaching its lowest level since February 2018 as the stronger local currency helped limit increases in the cost of imported goods.
Consumer prices increased 6.2% from a year earlier, down from 6.5% in July, Chola Daka, the country’s Director of Demography and Social Statistics, told reporters in Lusaka on Thursday. Prices rose 0.2% during the month.
The latest reading keeps inflation close to the lower end of the Bank of Zambia’s target range of 6% to 8%, signalling a continued moderation in price pressures after years of elevated inflation.
The decline has been supported in part by the performance of the Zambian currency, which has helped reduce the local-currency cost of imported products. A stronger exchange rate can ease inflationary pressure in an economy that relies on imports for a significant share of consumer and business goods.
August’s reading represents a further improvement from the previous month, when annual inflation stood at 6.5%. The 0.2% monthly increase also points to relatively contained short-term price pressures.
The moderation in inflation provides additional room for policymakers to assess monetary conditions as Zambia continues its broader economic recovery following years of debt distress and restructuring. Keeping inflation within the central bank’s target range will remain important for household purchasing power, business planning and investor confidence.
The latest data also reinforce the importance of exchange-rate stability to Zambia’s inflation outlook. If the currency remains supportive and domestic price pressures stay contained, inflation could continue to operate near the lower portion of the central bank’s target range in the months ahead.
