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Zambia’s annual inflation rate for February 2025 increased slightly to 16.8 percent, up from 16.7 percent in January 2025, according to the latest report from the Zambia Statistics Agency.
This change indicated that, on average, the prices of goods and services in the country have risen by 16.8 percent between February 2024 and February 2025.
Acting Statistician General, Sheila Mudenda, said the primary driver behind this increase was a rise in food prices.
She stated that food inflation, specifically, saw a notable jump, reaching 20.6 percent in February 2025, up from 19.2 percent in January 2025.
This means that food prices, including items like bread, cereals, meats, fish, and fruits, have risen sharply over the past year.
Mudenda stated that key food items contributing to the increase included bread and cereals (such as mealie meal, rice, and macaroni), meat products (including beef, chicken, and goat meat), and various fruits like bananas, apples, and avocados.
In contrast, annual non-food inflation decreased to 11.7 percent from 13.2 percent in January 2024, driven by reductions in the prices of household appliances, air travel fares, and accommodation.
The combined contributions to the overall inflation rate were significant.
Food and non-alcoholic beverages accounted for 12 percentage points, while non-food items made up the remaining 4.8 percentage points.
Among the non-food sectors, housing and utilities, particularly water, electricity, and gas, were the largest contributors.
Mudenda stated that inflation across Zambia’s provinces varied, with Lusaka contributing the most at 5 percentage points, followed by the Copperbelt at 3.8 percentage points.
“Of the overall 16.8 percent annual inflation, Lusaka province contributed the highest at 5.0 percentage points, followed by Copperbelt which contributed 3.8 percentage points,” Mudenda said.
Central and Southern provinces also saw notable contributions, while Northwestern province had the least impact.
On the trade front, Zambia’s total trade for January 2025 was K52.2 billion, up 25.9 Percy from K41.5 billion in January 2024.
Mudenda said: “Exports reached K26.0 billion, with road transport handling the largest share of both export value and volume”.
She stated that imports totaled K26.3 billion, with road transport again leading in both value and volume.
Zambia’s trade deficit improved to K0.3 billion in January 2025, compared to K3.3 billion in December 2024, as a result of a decrease in both export earnings and import bills.
The decrease in exports was largely driven by a fall in intermediate and consumer goods, while imports decreased due to lower demand for intermediate goods, capital goods, and raw materials.
This data not only highlights the continuing pressures on Zambia’s economy, particularly in terms of food prices and trade dynamics, but also indicates some signs of stabilization in the trade deficit.
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