Zambia’s annual inflation rate held steady at 6.5% in July 2026, unchanged from June. This remained the lowest level since February 2018 and stayed comfortably within the central bank’s 6%–8% target range. The subdued inflation was largely underpinned by a sharp appreciation of the kwacha, which has strengthened by nearly 18% against the US dollar so far this year, driven by surging copper prices and government measures promoting the use of the local currency.
Price pressures were further contained by the government’s decision earlier in the month to extend a fuel tax moratorium until September 30. This policy offered some cushion amid renewed tensions in the US–Iran conflict, which have raised concerns about higher global energy and fertilizer costs.
By category, food inflation eased to 6.4% in July from 6.7% in June, while non-food inflation quickened to 6.7% from 6.0%. On a monthly basis, consumer prices rose 0.2%, slightly above the 0.1% increase recorded in the previous month.
