๐๐ถ ๐๐ฅ๐๐๐๐ฌ ๐๐ข๐ฆ๐ | ๐๐ณ๐ฆ๐ด๐ฉ ๐๐ฆ๐ฆ๐ฌ๐ญ๐บ ๐๐ฏ๐ด๐ช๐จ๐ฉ๐ต๐ด ๐ฐ๐ฏ ๐ก๐ข๐ฎ๐ฃ๐ช๐ขโ๐ด ๐๐ค๐ฐ๐ฏ๐ฐ๐ฎ๐บ
๐๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ฅ๐ฒ๐ฑ๐๐ฐ๐ฒ๐ฑ ๐๐ผ ๐ญ๐ฑ.๐ฏ% ๐๐ฎ๐๐ ๐ ๐ผ๐ป๐๐ต , ๐๐๐ ๐ช๐ต๐ ๐๐ฟ๐ฒ ๐ฃ๐ฟ๐ถ๐ฐ๐ฒ๐ ๐ฆ๐๐ถ๐น๐น ๐ฅ๐ถ๐๐ถ๐ป๐ด?
Zambiaโs inflation slowed in May 2025, offering slight relief to consumers. The inflation rate reduced to 15.3%, marking a 1.2 percentage point decline month-on-month and a 1.4 percentage point decline year-to-date. However, compared to the same period last year, inflation remains slightly higher than the 14.7% recorded in May 2024, reflecting seasonal factors. Importantly, this is the lowest inflation rate since June 2024, when inflation stood at 15.2%.
๐๐๐ ๐๐ต๐ฎ๐ ๐ฑ๐ผ๐ฒ๐ ๐๐ต๐ถ๐ ๐ฟ๐ฒ๐ฎ๐น๐น๐ ๐บ๐ฒ๐ฎ๐ป ๐ณ๐ผ๐ฟ ๐ผ๐๐ฟ ๐บ๐ผ๐บ๐ ๐ฟ๐๐ป๐ป๐ถ๐ป๐ด ๐ฟ๐ฒ๐๐๐ฟ๐๐ฎ๐ป๐๐ ๐ฎ๐ป๐ฑ ๐ผ๐ฟ๐ฑ๐ถ๐ป๐ฎ๐ฟ๐ ๐ญ๐ฎ๐บ๐ฏ๐ถ๐ฎ๐ป๐?
Consider a restaurant owner in Lilayi. Upon hearing that inflation has eased from 16.5% to 15.3%, she expects the price of chickens, a key input for her menu, to drop from K150 per bird to perhaps K140. Yet, when she visits the market, chickens have instead increased by 0.6%, consistent with the month-on-month food inflation recorded in May 2025.
Confused, she wonders if the ๐ผ๐ณ๐ณ๐ถ๐ฐ๐ถ๐ฎ๐น ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ณ๐ถ๐ด๐๐ฟ๐ฒ๐ ๐ฎ๐ฟ๐ฒ ๐บ๐ถ๐๐น๐ฒ๐ฎ๐ฑ๐ถ๐ป๐ด. But this misunderstanding is common; a drop in inflation doesnโt mean prices are falling, it simply means prices are rising more slowly than before. Inflation measures the rate of increase in prices, not the actual price level itself.
A closer look at regional dynamics (See dashboard below) shows that Lusaka Province contributed the most to Mayโs inflation, accounting for 4.5%, while North-Western Province contributed the least, at just 0.6%. This implies that the cost of living in Lusaka is rising at a faster pace than in North-Western Province, where price pressures are relatively subdued. Urban centres like Lusaka typically see faster increases in housing, transport, and food costs compared to rural or less economically active regions.
This weekly dose comes just one week before the Zambia Statistics Agency is expected to release its inflation data among other statistics on Thursday next week, key data releases likely to shape market expectations and economic forecasts.
DATA SOURCE: Zambia Statistics Agency (ZamStats)
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