Zambia’s annual inflation rate rose to an almost two-year high amid the ongoing depreciation of its currency, piling pressure on monetary policymakers to act when they meet next month.

The World Bank has approved a $275 million development policy operation for Zambia in support of the country’s reforms to restore fiscal and debt sustainability and promote private sector-led growth. The operation is an integral part of IDA’s substantial contribution to help Zambia recover from the COVID-19 pandemic and spillovers from the war in Ukraine, emerge from its debt crisis, and to shift to a more sustainable and inclusive growth.

Year-on-year inflation in Zambia stood at 9.9 percent in July, up from 9.7 percent in June, data released by the country's statistics agency on Thursday has shown.

The Zambian government has projected a modest 3.5 percent rise in its Gross Domestic Product (GDP) for 2022, a small rise from the 3.3 expected to have been attained last year.