Zambia has recorded a drop in annual inflation to 13 percent, showing early signs of economic relief though the burden on ordinary citizens has remained heavy.
In an interview with Lusaka Star, Economic Expert Kelvin Chisanga described the development as a tentative but critical sign of progress, while cautioning that the benefits of the easing inflation are not yet being felt at household or business level.
“This 13% figure is encouraging and shows that macroeconomic measures are starting to take effect However, prices for basic goods like mealie meal, cooking oil, and transport are still high and most families haven’t noticed any difference,” he said.
Mr. Chisanga attributed the disconnect between inflation data and lived experience to weak price transmission mechanisms and deeper structural issues such as supply chain bottlenecks, import dependence, and low domestic production.
“The economy is stabilizing on paper, but structurally, we are still facing serious inefficiencies,” he stated.
Mr. Chisanga further suggested that the current drop in inflation presents a golden opportunity for government to implement targeted reforms in agriculture, energy, and logistics, stressing that policy action must now focus on practical measures to stimulate production and reduce the cost of doing business.
“We need to unlock the potential of our local industries by Investing in agriculture, fixing roads and transport systems, and improving access to capital for small businesses will help make this inflation drop meaningful,” he said.
He warned that over reliance on monetary funds such as interest rate hikes would not be enough without corresponding structural development.
“Stabilizing inflation is not just about controlling money rather about addressing the root causes of high prices and that includes fuel importation costs, poor infrastructure, and low food output,” Mr Chisanga said.
Mr. Chisanga noted with concern that Small and Medium Enterprises (SMEs), which form the backbone of Zambia’s economy, are still grappling with high operational costs and lack of access to affordable credit.
“Multiple SMEs are running at the edge, transport costs are high, fuel prices are unstable, and the kwacha’s liquidity is still tight and these challenges are keeping goods expensive,” he said.
He added that rural communities remain particularly vulnerable, as they face added constraints in accessing stable markets and affordable services.
“Urban areas might feel a slight easing in some commodities, but rural Zambia continues to suffer the brunt of logistical and distribution failures,” Mr said.
Mr. Chisanga called upon policy makers to act swiftly and decisively to turn the inflation trend into long term inclusive growth.