Inflation, a key economic indicator, reflects the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. This article delves into the inflation trends in Zambia, providing a detailed analysis of historical data, recent developments, and the factors influencing price changes.
The average inflation rate in Zambia was estimated at approximately 14.99 percent in 2024. This indicator measures inflation based upon the year-on-year change in the average consumer price index, expressed in percent. In the ten years leading up to 2024, consumer price inflation in Zambia averaged 12.1%, aligning with the Sub-Saharan Africa regional average of 10.8%. The 2024 average figure was 15.0%.
Between 1980 and 2024, the inflation rose by around 3.26 percentage points, though the increase followed an uneven trajectory rather than a consistent upward trend. The inflation is forecast to decline by about 7.99 percentage points from 2024 to 2030, fluctuating as it trends downward.
The inflation rate for consumer prices in Zambia moved over the past 44 years between 6.6% and 158.4%. For 2024, an inflation rate of 14.6% was calculated.
During the observation period from 1980 to 2024, the average inflation rate was 31.1% per year. Overall, the price increase was 4.71 million percent. An item that cost 100 kwachas in 1980 costs 4.71 million kwachas at the beginning of 2025.
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Historical Inflation Rates in Comparison
In comparison to most other countries, the drastic price increases are no longer average. Usually this is a sign of political and economic turmoil. In the last 5 years alone up to the end of 2024, the inflation rate averaged 14.8%. Cumulatively, it was 99.1%. In the USA, on the other hand, it was 4.2% on average and 22.7% cumulatively in the same period.
The Consumer Price Index (CPI) of 158.4% in 1993 means, that compared to the previous year all prices increased by an average of 158.4%.
Inflation calculator for Zambia: Enter any amount, a start year and an end year here. You will then be shown the amount that resulted from the original amount after inflation.
100 kwachas in 1980 will still be 100 kwachas in 2025. The nominal value does not change. What does change, is the purchasing power. In other words, the amount of goods that can be bought with this money. As inflation increases, this amount decreases.
Example: The purchasing power of 100 kwachas in 1980 corresponds to that of 4,712,432.93 kwachas at the beginning of 2025. Conversely, in 1980 you could buy as much with -0.00004 kwachas as you can today with 1000 kwachas.
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Factors Dampening Inflation
Most precious metals, commodities, and staple foods are traded on international exchanges in US dollars. These include primarily gold, silver, platinum, copper, various types of oil, but also wheat, corn, and sugar. Even if these products are purchased on local markets, their prices are based on global exchanges, which are largely dominated by the US dollar.
A year ago (i.e., in mid-November 2024), the exchange rate for the US dollar was 27.113 Zambian kwachas. Last week, it was around K 22.446. During this period, the value of the US dollar fell by 17.2 percent against the Zambian kwacha. As a result, raw materials are currently cheaper in Zambia, which benefits the domestic economy. The dollar exchange rate thus has a dampening effect on inflation. As soon as it rises again, raw materials in the country will also become more expensive, leading to an increase in inflation.
While this effect has a direct impact on trade and industry, consumer prices are initially only indirectly affected, as higher purchase prices are not always immediately passed on to consumers. However, it can be assumed that most companies will try to compensate for falling margins in the medium term.
Central banks also respond to price level movements by adjusting the key interest rate. A high key interest rate reduces inflation because it attracts foreign investors and thus brings money into the country. It strengthens the value of the country's own currency. Conversely, a low key interest rate stimulates the economy but increases inflation.
High inflation typically leads to a devaluation of the currency. Conversely, low inflation leads to an appreciation of the country's own currency.
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Recent Inflation Rates and Trends
Annual inflation for January 2025 was recorded at 16.7 percent same as that recorded in December, 2024. This means that on average, prices of goods and services increased by 16.7 percent between January 2024 and January 2025 (see Figure 1). This development was mainly attributed to price movements in food items.
Annual food inflation for January 2025 was recorded at 19.2 percent compared to 18.6 percent in December 2024. This means on average prices of food items increased by 19.2 percent between January 2024 and January 2025. This was mainly attributed to increases in prices of food items such as Bread and cereals (Breakfast Mealie Meal, Roller Mealie Meal, Maize grain, Samp, Rice Local, Rice Imported, Bread, Bun, Bread Flour Imported); Meat (Rump Steak, Brisket, Mixed Cut, T-bone, Beef sausage, Mince Meat, Ox-liver, Offals, chicken live, Chickenfrozen); Fish(Frozen Fish, Buka Buka, Fresh Kapenta, Dried Bream-Medium Sized- Opened, Dried Kapenta Mpulungu, Dried Kapenta Siavonga, Dried Kapenta Chisense); Eggs and Sugar.
The annual non-food inflation for January 2025 was recorded at 13.2 percent compared to 14.2 percent in December 2024.
Annual inflation for June 2025 slowed down to 14.1 percent from 15.3 percent recorded in May, 2025. This means that on average, prices of goods and services increased by 14.1 percent between June 2024 and June 2025 . This development was mainly attributed to price movements in both food and non- food items.
Annual food inflation for June 2025 was recorded at 16.7 percent compared to 17.9 percent in May 2025. This means on average prices of food items increased by 16.7 percent between June 2024 and June 2025. This was mainly attributed to price movements in prices of food items such as Cereals (including breakfast mealie meal, roller mealie meal, maize grain, Samp, rice), Vegetables (Spinanch, Chinese Cabbage, Dried beans, Sweet potatoes); Fruits (Oranges, Apples, Pineapples).
The annual non-food inflation for June 2025 was recorded at 10.3 percent compared to 11.6 percent in March 2025.
Zambia's annual inflation rate fell to 11.9% in October 2025, from 12.3% in September, marking a six-month streak of slowing price growth. It was the lowest reading since August 2023, owing to the kwacha’s continued strength. Food inflation slowed to 14.1% in October from 14.6% in September, while non-food price growth eased to 8.7% from 9%. On a monthly basis, consumer prices increased by 0.4%, after a 0.5% rise in the previous month.
Inflation Rate in Zambia decreased to 11.90 percent in October from 12.30 percent in September of 2025.
Inflation Rate in Zambia averaged 11.21 percent from 2005 until 2025, reaching an all time high of 24.60 percent in June of 2021 and a record low of 6.00 percent in December of 2011.
Inflation Rate in Zambia is expected to be 11.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.
In Zambia, the four main components of the consumer price index are: Food & Non-Alcoholic Beverages (54% of the total weight); Housing & Utilities (11%); Furnishings, Household Equipment & Routine Maintenance of the House (8%); and Clothing & Footwear (8%). Others include: Transport (6%); Miscellaneous Goods & Services (5%); Education (3%).
Zambia's Inflation Drops: What It Means for the Economy
| Year | Inflation Rate (%) |
|---|---|
| 2021 (June) | 24.60 |
| 2011 (December) | 6.00 |
| 2024 | 14.99 (average) |
| October 2025 | 11.90 |
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