Full Breakdown
Zambia Records Best Economic Performance in Eight Years Amid Inflation Decline and Copper Surge
6/26/2026, 12:15:46 AM
Inflation Hits Multi-Year Low
In June 2026 Zambia’s consumer-price index fell 6.5 % year-on-year, the lowest reading since early 2018. The month-on-month increase was 0.1 %, indicating a marginal deceleration in price growth across multiple sectors. This follows a May rate of 6.6 % and a January rate of 9.4 %, the first sub-double-digit figure in three years.
Economic Recovery Context
The inflation drop coincides with a 16 % appreciation of the Zambian kwacha against the U.S. dollar earlier in the year and a rebound in copper sales driven by higher global demand. Zambia and the Democratic Republic of Congo together hold Africa’s largest copper reserves, a factor highlighted in a Visual Capitalist report. The country produced a record 890 000 tonnes of copper in 2025 and is pursuing output expansion.
Key Figures Driving the Turnaround
- Sheila Mudenda, Statistician-General, delivered the inflation briefing to journalists in Lusaka.
- The Zambian Ministry of Mines and Minerals Development issued the copper-export figures cited in the government report.
Data & Statistics
- Inflation: 6.5 % YoY (June 2026), down from 11.2 % in December 2025.
- Currency: Kwacha gained roughly 16 % versus the U.S. dollar during 2026.
- Copper production target: >1 million tonnes by end-2026; 3 million tonnes by 2031.
- Refined copper exports Jan-Feb 2026: 155.3 thousand Mt; Jan-Feb 2025: 140.0 thousand Mt (10.9 % increase).
Why It Matters
The inflation decline improves household purchasing power and reduces financing costs for businesses. A stronger kwacha and expanding copper output enhance Zambia’s attractiveness to foreign investors, supporting the government’s goal of tripling copper production within five years. Sustained price stability also lowers the risk of external debt distress.
Official Statements & Responses
Statistician-General Mudenda told Lusaka reporters that consumer prices “recorded a year-on-year dip of 6.5 % this month, representing a decrease from the 6.6 % reported in May,” underscoring a slowdown in price pressures. A government report on copper exports highlighted a 10.9 % rise in refined copper shipments for the January-February 2026 period compared with the same period in 2025, reflecting stronger global demand and higher export volumes.
What’s Next
Zambia aims to exceed one million tonnes of copper output by the close of 2026 and to triple production to three million tonnes by 2031, leveraging the current inflation environment and currency strength to attract additional international investment. Monitoring of inflation trends and export performance will determine whether the economy can sustain its best performance in eight years.
