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The cost of living for a family of five in Lusaka rose by 7.5% in October, with the basic needs and nutrition basket increasing by K854.08 to K12,253.72, prompting the Jesuit Centre for Theological Reflection (JCTR) to call for a more socially responsive 2027 National Budget.
The increase from K11,399.64 in September was driven largely by rising food prices, with the food component of the basket climbing from K4,574.79 to K5,339.52.
In a statement issued in Lusaka on Tuesday, JCTR Executive Director Father Daniel Mwamba Mutale said Government needed to do more to ease the cost of living and protect vulnerable households from rising prices and additional taxes.
Across the 16 districts monitored by the Centre, the average basket stood at K7,660.84, with Lusaka recording the highest cost at K12,253.72 and Chinsali the lowest at K6,043.67.
“The rise is largely attributed to seasonal scarcity of vegetables such as bondwe and pumpkin leaves during the hot season, and prices are expected to rise further as the dry spell linked to El Niño continues,” Mutale said.
He noted that although inflation had declined to 6.3% in October 2026 from 11.2% in December 2025, the easing had yet to translate into meaningful relief for households.
Government presented a K284.8 billion expenditure budget for 2027 on November 6, 2026.
Mutale welcomed increased allocations to social protection but said the proposed adjustments to cash transfers remained inadequate against the cost of basic needs.
Under the 2027 Budget, social protection spending will rise from K15.6 billion to K16.2 billion, while monthly Social Cash Transfers will increase from K400 to K450 and from K600 to K650 for households with persons with disabilities. Coverage is also expected to expand from 1.5 million to more than 1.6 million households.
He said the K450 monthly transfer represented only 3.7% of the Lusaka household basket, limiting its ability to meet the basic needs of poor families.
“The decision not to provide funding for the Food Security Pack in 2027 is a major concern, especially at a time when many households are facing the effects of El Niño,” he said.
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Mutale, however, welcomed the increase in funding for Disaster Risk Management from K81.4 million to K316.5 million, alongside planned investments in water harvesting, dams and climate advisory services for four million farmers by 2029.
He also acknowledged plans to add 1,400 megawatts of non-hydro electricity generation capacity.
On taxation, Mutale warned that the increase in Value Added Tax (VAT) from 16% to 16.5% could raise the cost of essential goods and services, including cooking oil, bread, fish, eggs, beans, charcoal and transport, disproportionately affecting low-income households.
He also expressed concern over the planned increase in the mobile money levy, saying it could burden low-income families and small traders while reversing gains in financial inclusion.
Mutale further argued that retaining the income tax-free threshold at K5,100, unchanged since 2024, offered little relief to low- and middle-income earners, despite the introduction of a new 39.5% tax rate on monthly income above K37,000.
“The 2027 Budget contains some commendable measures, but with the basket rising and new taxes pushing prices up, Government needs a more socially responsive budget that actually lowers the cost of living for the poor,” Mutale said.
He urged Government to strengthen support for vulnerable households, restore funding for food security programmes and ensure that tax measures did not deepen poverty.
Mutale said the centre would continue monitoring the cost of living and engaging Government on measures to make basic needs affordable for all Zambians.
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