(Bloomberg) -- Zambia’s annual inflation rate rose to its highest level in almost four years in September and the economy grew at its slowest pace since 2021 as an El Niño-induced drought caused crops to wither and drove up corn, rice and meat prices.
Consumer prices increased 15.6%, compared with 15.5% in August, Statistician-General Goodson Sinyenga told reporters in Lusaka, the capital, on Thursday. That was the highest level since December 2021.
The economy expanded 1.7% in the second quarter, down from 2.2% in the prior three months.
Besides curtailing agricultural output, the worst drought in more than a century has constrained hydropower generation, with households and businesses at times subjected to more than 24 hours without electricity at a stretch. That’s prompted the government to halve its economic growth forecast for this year to 2.3% and it may revise it lower on Friday when Finance Minister Situmbeko Musokotwane delivers his annual budget.
The deteriorating outlook and increased imports of electricity and food have caused the kwacha to weaken, adding to price pressures.
Food prices rose 17.9% from 17.6% in August, while non-food price growth slowed to 12.4%, from 12.5% last month, the statistics agency said.
(Updates with GDP data from first paragraph.)
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