By Burnett Munthali
The Bank of Zambia (BOZ) has projected that the country’s inflation rate will average 13.8 percent in 2025, with expectations of further decline in the years ahead.
This projection was revealed by BOZ Governor Denny Kalyalya during a media briefing held on Friday, as the central bank outlined its outlook for Zambia’s economic stability.
Governor Kalyalya explained that inflation is expected to continue its downward trend, reaching an average of 8.8 percent in 2026.
He further noted that if the current monetary and fiscal policies are maintained, inflation could fall within the bank’s medium-term target range of 6 to 8 percent by the year 2027.
The central bank’s forecast signals cautious optimism for the Zambian economy, which has faced several macroeconomic challenges in recent years, including currency volatility and rising commodity prices.
Kalyalya attributed the projected improvement in inflation to a combination of tighter monetary policy, improved fiscal discipline, and anticipated stability in global and domestic economic conditions.
He emphasized the need for continued coordination between fiscal authorities and the central bank to ensure inflation targets are met while maintaining economic growth.
The BOZ Governor also reassured Zambians that the central bank remains committed to achieving price stability, which he said is a critical foundation for sustainable economic development.
While the inflation forecast brings hope for better days ahead, Governor Kalyalya acknowledged that risks remain, including climate-related shocks, global economic uncertainty, and domestic supply-side pressures.
The Bank of Zambia’s projections are seen as a positive signal to investors, financial institutions, and ordinary Zambians who have been grappling with the rising cost of living.
As Zambia moves forward, economic watchers will be monitoring how well the central bank’s policy tools are implemented and whether the projected figures will translate into tangible relief for consumers.
