LUSAKA, May 28 – Zambia recorded its slowest inflation rate in more than eight years in May as a stronger local currency and a record corn harvest helped stabilize prices across the economy.
According to the country’s statistics agency, annual consumer inflation eased to 6.6% in May from 6.8% recorded in April, while prices increased marginally on a monthly basis.
The latest figures highlight improving macroeconomic conditions in Africa’s second-largest copper producer as rising copper prices continue supporting export earnings and strengthening the national currency.
The Zambian kwacha has appreciated more than 19% against the US dollar this year, making it one of the world’s strongest-performing currencies in 2026.
The currency rally has also helped strengthen Zambia’s foreign-exchange position, with reserves rising to approximately $6.2 billion by the end of March, equivalent to more than five months of import cover.
Improved agricultural production has further contributed to easing inflationary pressure.
The government expects corn output to increase by roughly 28% this year to a record 4.94 million tons following favorable weather conditions and improved harvest expectations.
Food inflation slowed to 6.9% in May from 7.3% the previous month, reflecting lower pressure on staple food prices.
However, non-food inflation edged slightly higher, driven partly by lingering global energy and import-related costs.
The Bank of Zambia recently lowered its benchmark interest rate by 25 basis points to 13.25%, citing improving inflation conditions and stronger agricultural output.
The decision contrasts with the more cautious stance adopted by many global central banks amid concerns about inflation risks linked to geopolitical tensions and rising commodity prices.
The ongoing conflict in the Middle East has continued pushing up global fuel, fertilizer and food costs since late February.
Zambian authorities have attempted to reduce the impact on households by temporarily suspending certain fuel taxes and maintaining value-added tax relief measures on fuel imports through the end of June.
The country is also continuing discussions with the International Monetary Fund and the World Bank over additional financial support, with negotiations on a new IMF program expected to progress after Zambia’s upcoming elections in August.
