Zambia’s annual inflation holds steady at 6.5% in July

LUSAKA – Zambia's annual inflation rate held steady at 6.5% in July 2026, maintaining the same level as the previous month, the Zambia Statistics Agency (ZamStats) announced on Thursday. This stable reading, which remains near the lower end of the Bank of Zambia's 6%-8% target range, signals a period of relative price stability for the Southern African nation, largely buoyed by a robust Kwacha and strategic government interventions. Statistician-General Sheila Mudenda, speaking at the monthly inflation briefing in Lusaka, highlighted that this figure represents the lowest inflation rate recorded since February 2018. The stability is primarily underpinned by the Kwacha's significant appreciation against the US dollar, gaining nearly 18% this year. This currency strength has been driven by surging copper prices – a key export for Zambia – improved foreign exchange inflows, and the government's concerted efforts to promote the use of the local currency. Further contributing to the containment of inflationary pressures is the government's decision to extend a fuel tax moratorium until September 30. This measure has provided crucial relief to consumers and businesses, cushioning them against potential increases in global energy and fertiliser costs, especially amid renewed international tensions. While food inflation eased slightly to 6.4% in July from 6.7% in June, non-food inflation saw a modest acceleration from 6.0% to 6.7% during the same period. On a monthly basis, consumer prices rose by 0.2%, a slight uptick from the 0.1% increase observed in June. This sustained low inflation environment holds significant implications for the Zambian economy and its citizens. For households, stable prices, particularly for essential goods, can enhance purchasing power and improve living standards. Businesses, in turn, benefit from greater predictability in operational costs, fostering a more conducive environment for investment and growth. The Bank of Zambia's monetary policy