Zambia’s Annual Inflation Rate Drops to 13.0% in July

Zambia’s annual inflation rate for July 2025 slowed to 13.0 percent, down from 14.1 percent recorded in June, according to the latest figures released by the Zambia Statistics Agency (ZamStats).

The agency attributed the decline primarily to a reduction in both food and non-food prices, signaling a possible easing of cost pressures on households and businesses.

“The slowdown in the annual inflation rate is largely due to price decreases in selected food items such as cereals, vegetables, and meats, as well as non-food items including household goods and fuel,” said ZamStats Interim Statistician-General, Ms. Leah Ngulube, during a monthly briefing in Lusaka.

Food Inflation Falls
Food inflation, which accounts for a significant portion of Zambia’s Consumer Price Index (CPI), dropped from 15.7 percent in June to 14.3 percent in July. Key drivers included falling prices of maize meal, fresh vegetables, fish, and cooking oil—staples for many Zambian households.

Ngulube noted that the improved food supply, aided by seasonal harvests and stabilized transport costs, contributed to the decline.

Non-Food Inflation Also Eases
The non-food inflation rate declined to 11.3 percent in July from 12.1 percent in June, with the largest contributions coming from price reductions in clothing and footwear, fuel, charcoal, and certain construction materials.

Economists say the deceleration may provide room for the Bank of Zambia to maintain or adjust monetary policy as it balances inflation control with economic growth.

Month-on-Month Inflation
Month-on-month inflation also slowed to 0.6 percent in July, compared to 1.1 percent in June, suggesting a cooling trend in price increases across the board.

Outlook
While the downward trend is welcomed by consumers, analysts caution that external risks such as global fuel price volatility, exchange rate fluctuations, and potential climate impacts on agriculture could still influence inflation in the coming months.

ZamStats will continue to monitor price movements as part of its mandate to provide timely and accurate economic data to inform policy and investment decisions.

Source: Zamstats