Zambia’s August inflation eases to 6.2 per cent

Transport inflation fell to 5.3 per cent from 5.7 per cent, while health inflation reached 9.0 per cent.

Provincially, Lusaka recorded the highest annual inflation rate at 8.3 per cent, while Luapula recorded the lowest at 4.3 per cent.

Central recorded 5.8 per cent, Northern 5.7 per cent, Copperbelt 5.6 per cent, North-Western 5.5 per cent, Southern and Western 5.4 per cent each, and Eastern 4.8 per cent.

Compared with July, inflation declined in Central, Copperbelt, Eastern, Lusaka, North-Western, Southern and Western provinces, while it increased in Luapula and Northern.

The August rate was 18.2 percentage points lower than the 24.4 per cent recorded in August 2021.

The Ministry said the easing of inflation means purchasing power is eroding more slowly and could give businesses greater certainty when setting prices, preparing budgets and investing.

It said the continued decline in inflation supports Government’s shift from economic stabilisation towards productive investment, with the aim of promoting job creation, higher productivity, stronger competitiveness, private-sector-led growth and shared prosperity.

The Ministry said more predictable prices can strengthen business confidence and planning, helping firms invest, expand production and hire.

It said sustained economic discipline could help translate macroeconomic stability into broader economic opportunities and improved livelihoods.

The Ministry, however, stressed that lower inflation does not mean previous price increases have been reversed.