Zambia’s inflation rate has fallen below 10% for the first time since 2023, signaling growing relief for consumers and policymakers alike. Annual inflation eased to 9.4% this January, helped by a stronger kwacha and cooling food and non-food prices. The currency has surged 16% since December, buoyed by central bank controls on foreign-currency use and a rally in copper prices, the nation’s primary export. With copper exports driving revenues and shoring up reserves, inflationary pressures are gradually softening. Furthermore, the recent successful conclusion of an IMF financing program paves the way for discussions on new support, which could further boost Zambia’s currency. The trend strengthens expectations that the Bank of Zambia could extend its interest-rate cuts next month.
Bloomberg
