Strong Kwacha and Record Harvest Push Zambia Inflation to Multi-Year Low

May 29, 2026

Mintesinot Nigussie

Zambia is experiencing its most stable inflation environment in more than eight years as a strengthening currency, rising copper earnings and improved agricultural output ease pressure on consumer prices.

The southern African economy has benefited from a sharp appreciation in the kwacha, which has gained more than 19 percent against the US dollar since the start of 2026.

The currency gains have improved Zambia’s foreign exchange position, with reserves reaching about 6.2 billion US dollars by the end of March.

At the same time, the government expects maize production to rise around 28 percent this year to a record 4.94 million tonnes following favourable rainfall.

The combination of lower import pressures and improved food supply helped annual inflation ease to 6.6 percent in May from 6.8 percent in April.

Food inflation slowed more noticeably, declining to 6.9 percent from 7.3 percent a month earlier.