Zambia’s annual inflation rate increased to a nearly two-year high of 13.2%, slightly up from 13.1% the previous month. The kwacha weakened by about 34% against the USD since July. Officials tried to stabilize the kwacha by applying new export payment regulations, a 200 bps interest rate hike last year to 11% and increasing RRR for banks. The currency’s decline is attributed to lower copper production and falling metal prices, the main contributors to Zambia’s FX earnings.