{"id":566958,"date":"2026-07-30T14:03:35","date_gmt":"2026-07-30T14:03:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/566958\/"},"modified":"2026-07-30T14:03:35","modified_gmt":"2026-07-30T14:03:35","slug":"africas-strongest-currency-keeps-july-inflation-stable-despite-global-pressures","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/566958\/","title":{"rendered":"Africa’s strongest currency keeps July inflation stable despite global pressures"},"content":{"rendered":"


\n <\/a><\/p>\n

Zambia\u2019s annual inflation held steady in July, remaining near the lower end of the central bank\u2019s target range as a rally in the kwacha helped curb import costs despite mounting global energy price risks.\n<\/p>\n

Consumer prices rose 6.5 percent year-on-year, unchanged from June, the Zambia Statistics Agency said on Thursday. The reading remained the lowest since February 2018 and comfortably within the Bank of Zambia\u2019s six to eight percent target range.\n<\/p>\n

The stable inflation outlook has been underpinned by the kwacha\u2019s sharp appreciation this year. The currency has gained nearly 18 percent against the US dollar, buoyed by soaring copper prices, improved foreign exchange inflows, and government measures to promote the use of the local currency.\n<\/p>\n

According to African Markets, the kwacha had strengthened by 14.9 percent against the dollar as of July 30, making it Africa\u2019s best-performing currency this year, while Bloomberg data ranks it among the world\u2019s top-performing currencies.\n<\/p>\n

Inflation was also contained by the government\u2019s decision earlier this month to extend a fuel tax moratorium until September 30, cushioning consumers against higher fuel costs as renewed tensions between the United States and Iran threatened to push up global oil and fertiliser prices.<\/p>\n

Food inflation slowed to 6.4 percent in July from 6.7 percent a month earlier, while non-food inflation accelerated to 6.7 percent from 6.0 percent. On a monthly basis, consumer prices rose 0.2 percent, compared with a 0.1 percent increase in June.\n<\/p>\n

The combination of a stronger currency and subdued inflation could bolster President Hakainde Hichilema\u2019s economic credentials ahead of the August 13 general election, in which he is seeking a second term.\n<\/p>\n

Voters are likely to judge the government\u2019s economic performance largely through the exchange rate and its ability to maintain currency stability, David Cowan, chief Africa economist at Citigroup, said.\n<\/p>\n

A stronger kwacha has also helped lower the cost of imported goods, easing inflationary pressures in an import-dependent economy while reinforcing investor confidence in Zambia\u2019s macroeconomic outlook.\n<\/p>\n

Bunmi Bailey<\/a> <\/p>\n

Bunmi holds a degree in Economics from the University of Lagos and has over eight years of experience in content writing and journalism.
\n
\nHer career spans roles as a financial and business journalist at BusinessDay Media and TechCabal, and as Head of Research at SBM Intelligence, an Africa-focused market intelligence and strategic consulting firm.
\n
\nShe also served as Editor at Finance in Africa, a subsidiary of Businessfront and is currently Assistant Editor, Finance (Africa), at BusinessDay. <\/p>\n

<\/p>\n

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