Zambia’s Inflation Eases to 13% — Tentative Signs of Stability Amid Sluggish Transmission

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Zambia’s Inflation Eases to 13% — Tentative Signs of Stability Amid Sluggish Transmission
By Kelvin Chisanga
Zambia’s headline inflation has eased to 13%, signaling tentative yet notable progress towards macroeconomic stability.
This pattern of deceleration deeply reflects ongoing fiscal and monetary efforts to rein in price growth primarily through tighter spending, currency stabilization measures and moderate improvements in food supply dynamics.
However, the underlying price transmission mechanisms still remain sluggish, limiting the immediate impact on household welfare and cost structures for businesses.
Structural inefficiencies, such as supply chain rigidities, import dependency and lagging domestic production capacity, continue to delay the trickle-down effects of stabilized inflation into lower retail prices. In particular, energy, transport, and staple food prices remain elevated, exerting pressure on real incomes and dampening consumer confidence.
While the downward movement in inflation provides a critical window of opportunity for rebuilding investor confidence and recalibrating market expectations, it also calls for targeted policy responses. These include accelerating agricultural productivity, resolving logistics bottlenecks, and reinforcing local currency liquidity ensuring that macro-level gains translate into tangible, grassroots improvements.
In essence, the current inflation trend suggests directional progress, but the durability of this progress depends heavily on how swiftly the real economy responds and how efficiently corrective.

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