The United Party for National Development government led by President Hakainde Hichilema has cut inflation by 50 % in eight months. The Bank of Zambia governor thanked government for fiscal restraint. Zambia this is like getting a pay raise.
“Zambia’s annual inflation rate decelerated for the ninth straight month to 11.5% in April of 2022, from 13.1% in the previous month. It was the lowest reading since November 2019, amid a slowdown in prices of both food (14.1% vs 15.3% in March) and non-food products (8.2% vs 10.3%). On a monthly basis, consumer prices were up 0.7%, slowing from a 0.8% rise in the previous month.
The slowdown corroborates the central bank’s expectations that inflation is trending downwards and could ease pressure on the monetary policy committee to hike interest rates on May 17th. The Central Bank of Zambia raised its key interest rate by 100bps in 2021 as inflation has been above the upper bound of the 6-8% target range since May 2019. source:” Central Statistical Office of Zambia