Zambia’s annual inflation rate slowed to its lowest level in more than eight years in May, underscoring the growing resilience of the southern African economy despite rising global price pressures linked to the conflict involving Iran and wider tensions in the Middle East.
Data released by the Zambia Statistics Agency showed consumer inflation eased to 6.6 percent in May from 6.8 percent in April, marking the fifth consecutive monthly slowdown and the lowest reading since February 2018. On a monthly basis, consumer prices rose by 0.2 percent, compared with a 0.7 percent increase the previous month.
The latest figures reflect improving macroeconomic conditions in Africa’s second-largest copper producer, supported by a stronger local currency, rising copper export earnings and expectations of a record maize harvest this year.
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“The continued moderation in inflation points to improving supply conditions and the stabilising effect of the stronger kwacha,” said economist Chibamba Kanyama. “Food prices have remained relatively contained despite global pressures from energy and fertiliser markets.”
