Zambia’s annual inflation rate declined to 6.2 percent in August 2026, down from 6.5 percent recorded in July, according to the latest figures released by the Zambia Statistics Agency (ZamStats). The decline signals a continued moderation in the rate at which prices of goods and services are increasing across the country. The latest figures were highlighted during a press briefing by ZamStats Acting Statistician General Chola Daka. The development provides some relief for households and businesses that have been dealing with changes in the cost of food, fuel, transport and other essential goods and services. While inflation remains an important economic concern, the latest movement suggests that overall price pressures continued to ease during August.
Food inflation was one of the main contributors to the decline in Zambia’s annual inflation rate during the month. According to ZamStats, food inflation fell to 6.0 percent in August from 6.4 percent in July 2026. The change was mainly linked to price movements in selected cereals, sugar, cooking oil and dried beans. These products form part of everyday household spending, meaning changes in their prices can have a direct impact on consumers across the country. The moderation in food inflation is therefore an important development for households, particularly those that allocate a significant portion of their monthly income to groceries and other food products.
Non-food inflation also recorded a modest decline during August, falling to 6.6 percent from 6.7 percent in July. ZamStats attributed the movement mainly to price changes in selected fuels and lubricants as well as the purchase of vehicles. Although the decrease was smaller than the movement recorded in food inflation, it contributed to the overall reduction in annual inflation. The figures show that both food and non-food categories recorded lower annual inflation rates during the month. This broad-based moderation suggests that the decline in overall inflation was not driven exclusively by one category of household expenditure.
Despite the decline in annual inflation, Zambia’s monthly inflation rate remained unchanged at 0.2 percent in August 2026. The same monthly rate was recorded in July, indicating that prices continued to rise during the month but at a relatively low pace compared with the annual rate. The distinction between monthly and annual inflation is important because a lower annual inflation rate does not mean that prices are falling. Instead, it means that prices are increasing at a slower rate than they were previously. For consumers, this means that the cost of goods and services can still rise even as the headline inflation rate continues to moderate.
Inflation trends also varied across Zambia’s provinces during August. Annual inflation declined in seven provinces, namely Central, Copperbelt, Eastern, Lusaka, North Western, Southern and Western Provinces. However, inflation increased in Luapula and Northern Provinces, showing that price pressures were not uniform across the country. Regional differences can reflect variations in food supply, transport costs, local demand and the availability of goods. These differences are important because national inflation figures provide an overall picture, while provincial movements can reveal how economic conditions are affecting consumers in different parts of Zambia.
The latest inflation figures were released alongside trade data showing that Zambia continued to record a substantial trade surplus. The country recorded a K4.1 billion trade surplus in July 2026, compared with K4.2 billion in June. This represented a marginal reduction in the trade surplus, although Zambia still exported more in value than it imported during the month. Total trade increased by 0.2 percent from K55.1 billion in June to K55.2 billion in July. The figures point to continued activity in Zambia’s external trade sector despite changes in the value and volume of some key exports.
Copper remained a major component of Zambia’s export performance, although refined copper earnings and volumes declined in July. ZamStats reported that refined copper export earnings fell by 4.5 percent during the month, while export volumes decreased by 7.9 percent. The monthly decline highlights the importance of changes in commodity prices and export volumes to Zambia’s trade performance. However, the longer-term picture was more positive, with cumulative refined copper export volumes increasing by 8.8 percent between January and July 2026 compared with the same period in 2025. This suggests that despite the weaker performance recorded in July, copper exports remained an important source of external trade activity during the first seven months of the year.
Zambia also recorded stronger performance in some categories of Non-Traditional Exports during July 2026. Agricultural Non-Traditional Export earnings increased by 20.9 percent, while non-agricultural Non-Traditional Export earnings rose by 3.0 percent. The growth in agricultural exports is particularly significant because stronger performance in this area can support diversification beyond traditional mineral exports. Expanding agricultural and other non-traditional exports can also create opportunities for producers and businesses that participate in domestic supply chains. The latest figures therefore point to continued activity in sectors beyond copper, even as the country’s major mineral export recorded a monthly decline.
The destination of Zambia’s exports also remained concentrated among several key trading partners. Canada was the country’s leading export destination in July 2026, accounting for 34.8 percent of total export earnings. The Democratic Republic of Congo followed with 15.5 percent, while China accounted for 12.4 percent of total export earnings. These figures demonstrate the importance of international markets to Zambia’s export sector and highlight the country’s links with major global and regional trading partners. At the same time, Zambia continued to rely heavily on a small number of countries for imported goods, with South Africa remaining the largest source of imports at 25.6 percent of the import bill, followed by China at 24.1 percent.
The combination of lower annual inflation and continued trade activity provides an important snapshot of Zambia’s economic conditions in August 2026. The decline from 6.5 percent to 6.2 percent indicates that the pace of annual price increases is easing, with food inflation making a notable contribution to the improvement. However, the unchanged monthly inflation rate shows that prices continued to increase during August, even if the pace of annual inflation moderated. At the same time, the trade figures highlight both opportunities and challenges, with growth in total trade and Non-Traditional Exports offsetting some of the weaker monthly copper performance. Zambia’s economic outlook will therefore continue to depend on developments in domestic prices, agricultural supply, commodity exports, imports and international demand.
The latest ZamStats figures ultimately show a gradual moderation in Zambia’s inflation rate while the country maintains significant levels of international trade. The fall in annual inflation to 6.2 percent is encouraging for consumers and businesses because it indicates slower price growth compared with July. Food inflation also moved lower, while non-food inflation recorded a smaller decline, providing evidence of easing price pressures across both major categories. However, the continued rise in monthly prices and differences between provinces show that households may experience the economic environment differently depending on where they live and what they purchase. With inflation moderating and trade remaining active, the August 2026 data provides a closely watched indication of Zambia’s economic direction and the changing pressures facing consumers, producers and businesses.