Zambia’s annual inflation rate slowed to 6.2 per cent in August 2026 from 6.5 per cent in July, extending the country’s recent period of relatively contained price growth.
The Zambia Statistics Agency, ZamStats, said the latest reading means that the average prices of goods and services were 6.2 per cent higher than in August 2025. The figure measures the pace of price increases, not a general fall in the cost of living.
Food inflation provides most of the relief
Annual food inflation eased to 6.0 per cent in August from 6.4 per cent in July. ZamStats attributed the movement mainly to price changes in cereals and other staples, including mealie meal, maize grain, local rice and household flour, as well as sugar, cooking oil and dried beans.
Non-food inflation also moderated, although more slowly, falling to 6.6 per cent from 6.7 per cent. Price movements in fuels and lubricants contributed to the change.
The easing matters because food occupies a large share of household spending in Zambia, particularly among lower-income families. A slower rate of food-price growth can therefore offer broader relief than an equivalent change in a less frequently purchased category.
However, households should distinguish between lower inflation and lower prices. At 6.2 per cent, prices are still rising on average, but more slowly than they were a year earlier. The purchasing-power benefit will depend on whether wages and household incomes grow at least as quickly, and whether the improvement is sustained across essential goods.
Inflation remains inside the policy target range
The August figure sits near the lower end of the Bank of Zambia’s 6 to 8 per cent target range. That strengthens the picture of macroeconomic stabilisation and may give monetary policymakers more room to consider financing conditions if inflation expectations, the exchange rate and food supplies remain favourable.
Any future interest-rate decision will still depend on a wider set of risks. These include the kwacha’s performance, energy costs, international oil prices, fiscal policy and the durability of Zambia’s improved harvest. A single monthly reading is encouraging, but it does not remove the possibility of renewed pressure.
The practical test is whether lower inflation translates into more predictable operating costs for businesses, less pressure on household budgets and, over time, cheaper credit. Zambia’s lending rates remain high relative to inflation, limiting investment by smaller firms even as headline conditions improve.
Trade surplus narrows slightly
The latest statistical release also showed that Zambia recorded a K4.1 billion trade surplus in July, slightly below the K4.2 billion surplus reported for June.
Exports rose marginally by 0.1 per cent to K29.7 billion. Non-traditional export earnings increased by 6.5 per cent to K9.9 billion and accounted for one-third of total export earnings, a positive sign for efforts to broaden the country’s export base.
Traditional export earnings, however, declined by 2.9 per cent to K19.8 billion. Earnings from refined copper fell by 4.5 per cent to K19.1 billion.
The divergence highlights Zambia’s continuing economic challenge. Non-traditional exports are growing, but copper still dominates foreign-exchange earnings and remains central to the strength of the kwacha, public revenue and the trade balance.
What to watch next
Three indicators will show whether the improvement is becoming durable: food inflation after the harvest season, the exchange rate as import demand changes, and the performance of non-traditional exports. Sustained progress across all three would make the 6.2 per cent reading more meaningful for households and businesses.
For further context, read why lower inflation may take time to reach households and our analysis of the economic priorities facing Zambia after the election.
Source: Zambia Statistics Agency. Featured image: The Zambian Economist editorial illustration, based on ZamStats data.
Related: Zambia’s Q2 2026 Economy: Stability Deepens, the Growth Dividend Still Missing, on inflation, the trade surplus and reserves through the second quarter.
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Update: read our new weekly diary, Events of the Week, 29 August 2026, reviewing the week to 28 August and the calendar through 4 September.
