By Joseph Tembo 
An Economic Analyst says the drop in June inflation rate to 14.1% reflects a strengthening trend toward macroeconomic stabilization, driven by notable declines in food and transport costs.
On Thursday, Zambia Statistics Agency (ZamStats) reported that overall inflation has declined to 14.1% from 15.3% in May 2025, the lowest level recorded in 14 months.
The Agency attributed the decline in June inflation figures to price movements in both food and non-food items.
Reflecting on the development, Kelvin Chisanga noted that the appreciation of the Kwacha was the major contributor to the latest inflation figures, supported by increased foreign exchange inflows, largely from robust mineral export performance and improved external financial support.
“These factors have helped reduce the cost of imports and enhance overall market confidence.”
“Further easing in food inflation was supported by the seasonal availability of key staples, along with improved domestic supply chains, particularly for cereals, fresh vegetables coupled with high yields in legumes,” Mr. Chisanga said.
He added that this has further helped soften price pressures across key essential commodities.
Mr. Chisanga however observed that despite the downward trend, the current inflation rate remains above the Bank of Zambia’s medium-term target range of 6–8%.
He said this was pointing to persistent structural and supply-side constraints within the economy, emphasizing the need for continued fiscal prudence and disciplined monetary policy.
Mr. Chisanga added that there is also need for targeted investments in agriculture, energy and logistics infrastructure, to drive long-term inflation control and build economic resilience.
“As Zambia moves forward, ensuring policy consistency, reinforcing the productive sectors and maintaining currency stability will stand to be vital in securing durable price stability effects and safeguarding the purchasing power of households,” he added.
According to ZamStats, annual food inflation decreased to 16.7 % from 17.9% in May 2025 due to a reduction in prices of items such as breakfast and roller mealie meal, maize grain, rice, vegetables, and fruits.
On the other hand, annual non-food inflation also dropped to 10.3% from 11.6% in May 2025 on account of decreases in the price of purchasing motor vehicles, passenger transport by air as well as fuel including petrol, diesel and Paraffin.
Cecilia Chiluba