Zambia’s Annual Inflation Falls to 7.5% in February 2026 as Food and Non-Food Prices Ease

Zamstats data shows a 1.9 percentage point drop from January, with all provinces recording declines and trade surplus surging to K4.7 billion

Zambia’s annual inflation rate declined by 1.9 percentage points in February 2026, settling at 7.5 percent, according to figures released by Zambia Statistics Agency (Zamstats) at its monthly bulletin. Acting Statistician General Mrs. Sheila S. Mudenda attributed the drop to easing price pressures across both food and non-food categories.

Food Inflation Leads the Decline

Annual food inflation fell sharply from 10.9 percent in January to 8.2 percent in February, while non-food inflation eased from 7.3 percent to 6.5 percent over the same period. Key food items contributing to price movements included cereals such as mealie meal, maize grain, rice, and wheat flour, alongside fruits, vegetables, fresh milk, and cooking oil. On the non-food side, fuel prices, air fares, motor vehicle purchases, and accommodation services were among the main drivers.

Health and Communication Costs Continue to Rise

Not all indicators moved in a favourable direction. Health costs increased by 9.4 percent between February 2025 and February 2026, while communication expenses rose by 4.8 percent over the same period — two CPI sub-groups that continue to exert upward pressure on household budgets despite the broader easing trend.

Provincial Breakdown: Northern Province Highest, Luapula Lowest

Annual inflation declined across all ten provinces in February. Northern Province recorded the highest provincial inflation rate at 9.2 percent, while Luapula Province posted the lowest at 4.3 percent. In terms of contribution to the national figure, Lusaka Province accounted for the largest share at 2.5 percentage points, followed by Copperbelt Province at 1.4 percentage points — reflecting the outsized economic weight of the country’s two most urbanised regions.

The overall monthly inflation rate edged up slightly to 0.6 percent in February, compared to 0.5 percent in January.

Trade Surplus Jumps to K4.7 Billion

On the trade front, Zambia recorded a significant improvement in its merchandise trade balance, with a surplus of K4.7 billion in January 2026 — up sharply from K1.0 billion in December 2025. However, the headline surplus masked a contraction in export earnings, which declined by 5.5 percent from K29.2 billion in December to K27.6 billion in January. The fall was broad-based, with decreases recorded across intermediate goods, consumer goods, raw materials, and capital goods — a development that warrants monitoring in the months ahead despite the overall positive trade position.