The cost of living in Zambia has been steadily rising, placing immense pressure on households across the country. Inflation, food shortages, energy challenges, and policy shifts have combined to create a storm that is eroding household incomes and worsening inequality. Here’s a breakdown of what’s happening, why it matters, and what can be done about it.

Zambia’s inflation has remained stubbornly high in 2025:

• Overall inflation: averaging between 14% and 17%
• Food inflation: particularly high, reaching 20% earlier this year
• Non-food items: also rising, with double-digit increases in essentials like fuel and household goods

The impact is uneven across provinces, but in places like Central and Copperbelt, inflation has pushed beyond 18%, making it harder for families to keep up with the cost of essentials.

The Basic Needs Basket: Families Struggling to Cope

The Jesuit Centre for Theological Reflection (JCTR) tracks the Basic Needs and Nutrition Basket (BNNB) — the estimated cost for a family of five to meet minimum living standards in Lusaka.

• February 2025: The basket stood at ZMW 11,599.12
• June 2025: It rose further to ZMW 11,763.38

Meanwhile, the average formal sector salary is about ZMW 7,731, and the national average income is just ZMW 5,369. That means the average Zambian household is falling far short of meeting even basic survival needs.

To put it simply: living costs are running away faster than incomes.

What’s Driving the Cost of Living?

Several factors are fueling this crisis:

1. Drought and Agricultural Strain Zambia’s worst drought in decades has cut crop yields, reduced food supply, and driven up prices of staples like maize and vegetables.
2. Energy Shortages and Load Shedding The Kariba Dam, Zambia’s key source of hydropower, has been operating at minimal capacity, causing long blackouts. Families are turning to charcoal, which has nearly doubled in price.
3. Currency Depreciation The Kwacha’s falling value has increased the cost of imports, including fuel and essential goods, pushing inflation higher.
4. Removal of Subsidies As part of debt restructuring and IMF-supported reforms, subsidies on fuel and electricity have been removed, leaving consumers exposed to global price shifts.
5. Supply Inefficiencies Agricultural input support programs are limited, making it hard for farmers to produce enough food at affordable costs.

Can Anything Be Done?

What Civil Society is Proposing

• Expand food and nutrition support for vulnerable households.
• Strengthen agriculture with better access to inputs, crop diversification, and irrigation.
• Improve wages and social protection systems so incomes keep up with living costs.
• Invest in clean, affordable energy alternatives to reduce dependence on charcoal.
• Tighten market regulation to stop exploitative pricing.

What Government is Doing

• The Bank of Zambia has kept interest rates high (14.5%) to slow inflation.
• A new 100 MW solar power plant was launched in Chisamba in June 2025 to diversify energy sources.
• Debt restructuring and fiscal reforms are underway, though critics argue these measures hurt ordinary Zambians in the short term.

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Conclusion

Zambia’s rising cost of living is more than an economic issue—it’s a human crisis. Inflation, food shortages, energy insecurity, and stagnant wages are forcing families into impossible choices.

While government and civil society are taking steps, the gap between income and basic survival costs remains wide. The question is not just about economics—it’s about whether Zambians can live with dignity, security, and hope for the future.