Zambia’s annual inflation fell to 11.9% in October, its lowest level in over two years, driven by sustained gains in the kwacha, which has helped curb import costs. Acting Statistician-General Sheila Mudenda announced the drop from September’s 12.3% in Lusaka.
The appreciation of the kwacha, Africa’s second-best performing currency this year, is largely attributed to a stronger fiscal environment and rising copper prices. This currency stability is easing price pressures across the board. Food inflation, a major component of the consumer basket, also showed a slight moderation.
This trend may prompt the central bank to consider lowering its key interest rate in November, after holding it steady. The bank forecasts inflation will return to its 6–8% target range early next year. The positive economic outlook is further supported by IMF program extension and preliminary data showing GDP growth accelerated to 5.2% in the second quarter.
