….Kudos to the UPND government’s economic policies
The EditorZambia
Signs are emerging that the cost of living in Zambia is poised to ease following a sustained decline in inflation under the leadership of President Hakainde Hichilema and the United Party for National Development (UPND) government. 
With inflation now trending downwards, government officials say the foundation has been laid for price stability and relief for ordinary households.
Commerce, Trade and Industry Minister, Chipoka Mulenga, has expressed optimism that the reduction in the inflation rate is not merely a statistical achievement but a clear signal that economic reforms are beginning to translate into tangible benefits for citizens.
During the month under review, the annual inflation rate for February dropped by 1.9 percentage points to 7.5 percent from 9.4 percent recorded in January 2026.
The steady easing of inflation marks a significant milestone in the UPND government’s efforts to stabilise the economy after years of volatility.
Minister Mulenga noted correctly that the decline demonstrates that economic gains are gradually filtering through the system. He also emphasised and guided that manufacturers and retailers who are benefiting from a more stable economic environment have a duty to pass those gains on to consumers.
The Minister said, “it is not enough for businesses to enjoy lower production costs while households continue to struggle with high prices.”
The recent drop in inflation is attributed to a combination of decisive policy measures implemented by the UPND government.
Among the most notable is the resolution of prolonged load-shedding, which had severely disrupted production and increased operating costs for businesses.
Stable electricity supply has reduced the reliance on expensive alternative power sources such as diesel generators. This alone has helped to lower production expenses for manufacturers and service providers, creating room for price reductions.
The reduction in fuel prices has also played a critical role. Fuel is a major driver of costs across all sectors of the economy, affecting transportation, distribution, and agricultural production. Lower pump prices have eased the burden on transporters and farmers, leading to a ripple effect across supply chains.
As transport costs decline, the prices of essential commodities such as mealie meal and other basic goods are expected to follow suit.
Economic analysts note that inflation at 7.5 percent represents a return to relative stability, allowing businesses to plan with greater certainty.
Stable prices encourage investment, expand production, and enhance competition.
Increased competition among producers and retailers often results in better pricing for consumers.
The UPND government’s broader economic reforms have further reinforced this positive trajectory. Fiscal discipline, improved revenue collection, and efforts to dismantle debt pressures have strengthened macroeconomic fundamentals.
Confidence in the economy has grown both locally and internationally, attracting investment that supports job creation and increased output. Higher production levels typically mean more goods on the market, which can help moderate prices.
For this reason, Minister Mulenga stressed that the responsibility now rests with the private sector to act responsibly. He reiterated that his ministry will continue engaging manufacturers and traders to ensure that price reductions are implemented where justified. The ultimate goal of the government is to see families experience real relief at the household level.
Consumers have already begun noticing modest improvements in certain commodity prices, though many remain cautious.
Economists warn that while inflation has slowed, consistent enforcement of fair pricing practices and continued economic stability are necessary to sustain the gains.
They also emphasise that global economic conditions remain unpredictable, making domestic prudence essential.
Nevertheless, the overall outlook is increasingly positive.
The combination of controlled inflation, stable electricity supply, and reduced fuel costs provides a strong platform for lowering the cost of living.
If businesses heed the government’s call and pass on the benefits of reduced operational expenses, households could soon experience meaningful relief.
For now, the decline in inflation offers a hopeful sign that Zambia’s economic recovery is gathering pace. With continued reforms and cooperation between the government and the private sector, the promise of a more affordable cost of living appears within reach.
