Annual inflation drops to 15%

STAFF WRITER

Zimbabwe’s annual inflation in ZiG terms eased to 15 percent in December from 19 percent in November, marking the lowest level since the local currency was introduced and reinforcing confidence in tighter monetary management.

Latest data from the Zimbabwe National Statistics Agency (ZimStat) show annual ZiG inflation declined by four percentage points in December, extending a disinflation trend that has accelerated in recent months.

“This means prices as measured by the all-items ZiG CPI increased by an average rate of 15,0 percent from December 2024 to December 2025,” ZimStat said.
The December outcome represents the lowest year-on-year inflation reading since the ZiG’s introduction in April last year, signalling sustained progress in stabilising domestic prices after early volatility largely driven by base effects.
The easing inflation trajectory reflects the impact of more coordinated monetary and fiscal policy measures, which have helped restore market stability and confidence. Authorities have maintained tight monetary conditions, managed liquidity, and leveraged foreign currency inflows to anchor prices.

The Reserve Bank of Zimbabwe had set a target of bringing annual ZiG inflation below 20 percent by December 2025, following sharp spikes earlier in the year as the new currency took hold.
On a month-on-month basis, inflation remained subdued, with ZiG inflation steady at 0,2 percent in December, unchanged from November.

“Prices as measured by the all-items ZiG CPI increased by an average rate of 0,2 percent from November 2025 to December 2025,” ZimStat noted.
Food and non-alcoholic beverages inflation slowed marginally to 0,6 percent during the month, while non-food inflation remained flat at 0,0 percent, indicating limited price pressures across most sectors of the economy.
Economists say the year-on-year trend provides a clearer measure of price stability, particularly after sharp inflation spikes earlier in 2025.
Annual ZiG inflation stood at 85,7 percent in April, peaked at 95,8 percent in July, before decelerating sharply to 32,7 percent in October, underscoring the pace at which inflationary pressures have since been contained.