The current inflation figure for the copper-rich Southern African nation, for the first time in three years, has dipped below double digits.
Compared to last month, when Zambia boasted an inflation rate of 11.2%, its current consumer price index sits at 9.4%, marking the first time since 2023 that the country has reported a single-digit inflation.
This new development follows a similar gain in the fellow Southern African country, Zimbabwe, which, coincidentally, has also endured its fair share of economic woes.
As seen on Bloomberg, Zambia’s inflation recovery was driven by its currency gain, which rose 16% against the U.S. dollar.
The country’s acting Statistician-General Sheila Mudenda revealed that the central bank’s restrictions on foreign-currency use in domestic transactions fuelled the currency gain, after relaying to reporters in Lusaka, what the country’s inflation for January was.
Additionally, copper, which constitutes 70% of Zambia’s exports and a quarter of government revenue, bolstered the economic gain, as copper prices soared to record highs.
The annual rate of food inflation decreased to 10.9% in January, a reduction from 12.9% recorded in the previous month.
The increase in non-food prices also decelerated, slowing to 7.3% from 8.7% in December.
A similar story in Zimbabwe
In a similar twist, the gain was propelled by stricter monetary policies, ameliorated supply chain conditions, and comparative stability within foreign exchange markets.
Zimbabwe’s dollar inflation rate (ZiG) decreased to 4.1% in January, down from 15% in December and 19% in November 2025.
After numerous setbacks resulted in hyperinflation that wiped away savings and forced Zimbabwe to use the US dollar in 2009, the Southern African country has spent more than ten years trying to develop a workable national currency.
Launched in April 2024, its modern endeavor, the ZiG (Zimbabwe Gold), already contributes to about 40% of daily transactions.
With a parallel-market premium of almost 20%, Oxford Economics specialists assert that the ZiG, which is partially backed by gold, has remained stable in official markets.
Over in West Africa, a few months back, Ghana celebrated a parallel win.
Ghana’s inflation gain
Inflation for Ghana was a stunning 23.8% in December 2024, which had peaked at 54% in December 2022, owing to currency devaluation, supply chain disruptions, and rising global commodity prices.
As has been synonymous with the aforementioned countries, Ghana’s economic recovery was largely driven by its currency performance and a spike in gold prices.
The currency performance has been consistent since the previous year, with a recent report indicating that Ghana saw a rise in its currency strength even as the year began.
The currency growth was significant enough to drive its central bank to inject up to $1 billion into the FX market to stabilize gains.
