For the first time in over a year, Zambia records an inflation decline, presenting the Southern African country with some much-needed economic relief.
- Zambia records first inflation decline in over a year.
- Annual inflation rate declines to 16.5% in March from 16.8% in the previous month.
- Drop in food prices due to increased rainfall following a severe drought.
Reports indicate that in March 2025, Zambia’s inflation went in a direction it had not threaded since July 2023.
The country’s annual inflation rate is reported to have declined to 16.5% in the current month, from 16.8% in February.
The revelation was made known to the media by the country’s acting Statistician-General Sheila Mudenda, on Thursday in the country’s capital; Lusaka.
Zambia saw a drop in price for essential food items such as bread and cereal, given the fact that the country was met with more rainfall following its worst drought in almost a century.
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In March, the food price increase fell to 18.9% from 20.6% in the previous month, as seen on Bloomberg.
Additionally, this year’s 3% decline in the value of the kwacha relative to the dollar caused non-food inflation to spike from 11.7% in February to 13.2%. In the month, prices increased by 1%.
Worst drought and currency issues
Last year, data from a Bloomberg report highlighted that the Zambian kwacha had recorded its weakest performance in June, trading as low as 26.4698 per dollar.
The report noted that the nation’s reserves have been depleted due to a lack of fiscal sustainability as well as ongoing droughts, which have impacted food imports and increased the country’s external financing needs.
Despite the currency issues and droughts, Zambia noted in January that it was looking towards its mining sector for economic recovery.
Zambia’s finance minister, Situmbeko Musokotwane, at the time, said that the country is depending on its mining industry to help it rebound from a major setback in progress this year.
He said this, stressing that new mines are expected to open shortly and that current miners would receive investments to improve output.
