The Editor Zambia
Zambia’s annual inflation rate has dropped significantly from 23.2 percent in May 2021 to 6.6 percent in May 2026, marking one of the strongest indicators yet of the country’s macroeconomic recovery under the UPND administration.
The latest figures released by the Zambia Statistics Agency show that inflation declined further from 6.8 percent recorded in April 2026, making May’s 6.6 percent reading the lowest since February 2018. 
The continued slowdown means Zambia has now remained within or very close to the government’s target inflation band of 6 to 8 percent.
Economic analysts say the development reflects improved fiscal discipline, a stronger Kwacha, better agricultural output, and tighter monetary policy coordination between government and the Bank of Zambia.
When the UPND government came into office in August 2021, Zambia was grappling with soaring prices, unsustainable debt levels, and a weakening currency.
Inflation had peaked above 24 percent during the PF administration, placing immense pressure on households and businesses.
Today, however, the economic picture appears considerably more stable.
According to the latest data, food inflation slowed to 6.9 percent in May 2026 from 7.3 percent the previous month, driven largely by reduced prices for mealie meal, maize grain, and imported rice.
Non-food inflation stood at 6.1 percent, reflecting moderate increases in fuel and pharmaceutical products.
Month-on-month inflation also slowed sharply, with consumer prices rising by only 0.2 percent in May compared to 0.7 percent in April.
Economist Dr. Lubinda Habazoka says the reduction in inflation demonstrates that consistent economic management is beginning to yield positive results.
“Moving inflation from above 23 percent to 6.6 percent is not something that happens accidentally. It reflects fiscal discipline, policy consistency, and improved confidence in the economy,” Dr. Habazoka said.
He explained that inflation affects nearly every aspect of daily life because it determines how quickly the prices of goods and services rise.
“When inflation is high, ordinary citizens suffer the most because their purchasing power is eroded very quickly. What we are seeing now is a more stable environment compared to what Zambia experienced a few years ago,” he said.
Dr. Habazoka noted that the appreciation of the Kwacha against major international currencies, combined with improved copper prices and a better maize harvest, has played a major role in easing inflationary pressure.
“A stronger local currency reduces the cost of imports, while a bumper harvest lowers food prices. Those two factors alone have helped to stabilize the economy significantly,” he added.
The economist, however, cautioned that lower inflation does not automatically mean the cost of living has become cheap overnight.
“People must understand that inflation measures the rate at which prices increase, not necessarily the actual price levels themselves. So while inflation is now low, the government must continue focusing on job creation and increasing incomes so that citizens can feel the benefits more directly,” he said.
Government officials have described the latest inflation figures as proof that the country is moving in the right direction economically.
The UPND administration has repeatedly argued that the reforms introduced since 2021, including debt restructuring, enhanced fiscal controls, and renewed investor confidence, are now beginning to bear fruit.
The country’s economic rebound has also been supported by improved mining sector performance and increased confidence from international financial institutions following Zambia’s debt restructuring agreement with official creditors.
Economic observers note that Zambia’s inflation trajectory now compares favourably with several countries in the region that continue to struggle with double-digit inflation.
Analysts further believe that maintaining inflation within the target range will help lower borrowing costs, encourage investment, and create a more predictable business environment.
For many households, however, the real test will be whether economic stability eventually translates into lower living costs and increased employment opportunities.
Despite the challenges that remain, the drop from 23.2 percent inflation in May 2021 to 6.6 percent in May 2026 represents one of the clearest indicators yet that Zambia’s economy is undergoing a period of stabilisation under the UPND government.
As the government continues to push for growth and recovery, economists say sustaining low inflation will remain critical to protecting household incomes and strengthening long-term economic confidence.
