Bank of Zambia Governor Dr Denny Kalyalya says inflation has been on a downward trend, declining to 14.1 percent in June from 16.5 percent in March, with further reductions of 13.0 percent in July, 2025.
He said the key drivers to these reductions included the improved supply of maize, lower fuel prices and the appreciation of the Kwacha against the United States of America Dollar and other major currencies.
The Governor sounded more bullish, projecting that inflation is projected to continue declining over the next eight quarters, projected to fall into the 6-8 percent target band in the first quarter of 2026, earlier than the projected May. He said in 2026, inflation is expected to average 7.7 percent sustained in the first half of 2027.
For those who may not read deeper into these figures, the BoZ Governor is promising that there are better days to come in the economy. He’s promising that the inflation rate will continue improving for the next eight quarters into next year, reaching sustained stability into 2026 which will continue into 2027. If we are to follow what he really means and what it entails, Kalyalya is saying that the price of goods in the country should continue to come down, thereby impacting the high cost of living in the country. That is what it means when someone projects that inflation is going to come down. If he said that the figures would be pointing upwards, then he would be literally telling you that you should expect high prices at the grocery store.
What are Zambians to do with the good news coming from Kalyalya? They should now be seriously on the watch to ensure that what Kalyalya has proclaimed is becoming reality in their daily lives. In short, the figures being proclaimed by the Governor must start to correspond with the general prices of goods in the economy. Only then will the figures be appreciated by the masses.
And by further projecting that there will be further reductions and a more stable inflationary environment, Kalyalya is saying that the fundamentals that have led to the reductions will continue to look favourable. He said improved supply of maize, lower fuel prices and the appreciated Kwacha were some of the fundamentals that have led to the improvement in the inflationary numbers. And since he’s projecting further reductions in inflation, the implication is that the same fundamentals that have brought about the current status will remain stable or continue improving. Zambians should therefore expect the supply of maize to remain improved, the Kwacha to continue appreciating against other major convertible currencies and the fuel prices to continue coming down. Be on the lookout to ensure there is no variation in these key figures.
Otherwise, now and going forward should be among the best periods Zambians have enjoyed since the UPND administration assumed office in 2021, if the figures will live with the reality of improved prices of goods and services in the economy.
By Daily Revelation Editor
Bank of Zambia Governor Dr Denny Kalyalya says inflation has been on a downward trend, declining to 14.1 percent in June from 16.5 percent in March, with further reductions of 13.0 percent in July, 2025.
He said the key drivers to these reductions included the improved supply of maize, lower fuel prices and the appreciation of the Kwacha against the United States of America Dollar and other major currencies.
The Governor sounded more bullish, projecting that inflation is projected to continue declining over the next eight quarters, projected to fall into the 6-8 percent target band in the first quarter of 2026, earlier than the projected May. He said in 2026, inflation is expected to average 7.7 percent sustained in the first half of 2027.
For those who may not read deeper into these figures, the BoZ Governor is promising that there are better days to come in the economy. He’s promising that the inflation rate will continue improving for the next eight quarters into next year, reaching sustained stability into 2026 which will continue into 2027. If we are to follow what he really means and what it entails, Kalyalya is saying that the price of goods in the country should continue to come down, thereby impacting the high cost of living in the country. That is what it means when someone projects that inflation is going to come down. If he said that the figures would be pointing upwards, then he would be literally telling you that you should expect high prices at the grocery store.
What are Zambians to do with the good news coming from Kalyalya? They should now be seriously on the watch to ensure that what Kalyalya has proclaimed is becoming reality in their daily lives. In short, the figures being proclaimed by the Governor must start to correspond with the general prices of goods in the economy. Only then will the figures be appreciated by the masses.
And by further projecting that there will be further reductions and a more stable inflationary environment, Kalyalya is saying that the fundamentals that have led to the reductions will continue to look favourable. He said improved supply of maize, lower fuel prices and the appreciated Kwacha were some of the fundamentals that have led to the improvement in the inflationary numbers. And since he’s projecting further reductions in inflation, the implication is that the same fundamentals that have brought about the current status will remain stable or continue improving. Zambians should therefore expect the supply of maize to remain improved, the Kwacha to continue appreciating against other major convertible currencies and the fuel prices to continue coming down. Be on the lookout to ensure there is no variation in these key figures.
Otherwise, now and going forward should be among the best periods Zambians have enjoyed since the UPND administration assumed office in 2021, if the figures will live with the reality of improved prices of goods and services in the economy.
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