By Cecilia Chiluba/Zambia/Lusaka
Zambia’s inflation figures for January 2026, are likely to remain largely unchanged, owing to stable economic fundamentals and limited recent shocks to the economy.
The country’s inflation rate currently stands at 11.2%. Zambia Statistics Agency (ZamStats), is expected to announce latest inflation figures on Wednesday, January 28.
Partner Siabutuba, an Economist, stated that the country is not likely to see any major changes in inflation expectations this month because there are no strong indicators suggesting a significant shift in inflation compared to previous months.
“We are not likely to see any major changes in inflation expectations this month because not much has happened in the economy to trigger strong movements,” Siabutuba explained.
However, he noted that there could be slight upward pressure linked to increased money circulation following payments to farmers who sold maize to the government through the Food Reserve Agency (FRA) during the previous crop marketing season.
According to him, once farmers receive funds, their increased purchasing power may stimulate demand for goods, both in rural and urban markets.
“This may introduce marginal shivers on inflation because farmers will have the capacity to procure goods, and traders may respond by adjusting prices slightly upward,” he said.
In an interview, Mr. Siabutuba added that urban traders may also anticipate higher demand as more farmers bring money into town, potentially leading to minor price increases.
Despite this, the economist expressed optimism that inflation could ease in February as the harvest season begins and more food enters the market.
On the recent positive performance of the Zambian Kwacha, Siabutuba said the currency’s strengthening is unlikely to have an immediate impact on reducing prices.
“The appreciation does not automatically affect goods already on the shelves, because those were procured at earlier exchange rates,” Mr. Siabutuba explained.
He added that although the Minister of Commerce, Trade and Industry, Chipoka Mulenga, has urged manufacturers and traders to pass on the benefits of a stronger Kwacha to consumers, many businesses remain cautious.
“Most businesses are in a wait-and-see position, trying to understand whether the Kwacha will hold its gains before adjusting prices,” he said.
Overall, Mr. Siabutuba maintained that inflation is expected to remain stable in January, with possible easing in the coming months depending on harvest outcomes and economic activity.
