Expert Projects Sustained Inflation Decline as Zambia Records 7.5% Rate in February

By Kalonje Mumba,

Financial Expert Kelvin Chisanga says the sharp decline in Zambia’s inflation rate to 7.5 percent in February is likely to be sustainable, citing strong economic fundamentals.

Speaking in an interview, Mr. Chisanga attributed the decline mainly to improvements in the agriculture sector, noting that food accounts for nearly 50 percent of the inflation basket. He explained that when food prices stabilize or fall, overall inflation responds more quickly.

He further said improved export competitiveness—particularly in key sectors such as copper production— has strengthened foreign exchange inflows, boosted market confidence, and increased the availability of forex in the economy.

Mr. Chisanga also linked the inflation decline to the appreciation of the Kwacha, which has strengthened by about 18 percent, explaining that a stronger currency reduces the cost of imports and eases pressure on domestic prices.