Online Reporter
Tapiwanashe Mangwiro
Senior Business Reporter
Zimbabwe’s annual ZiG currency inflation continues to ease, dropping by four percentage points to 15 percent in December and reinforcing growing optimism about durable price stability.
This is according to statistics released by the Zimbabwe National Statistics Agency (ZimStat), as measured by its all items ZiG Consumer Price Index (CPI).
“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 latest figure marks the lowest annual inflation reading recorded since the introduction of the ZiG in April last year and signals sustained progress in stabilising domestic prices.
At the height of Zimbabwe’s inflation troubles, prices shot to 208 percent at the last official reading in August 2008, wiping out savings and rendering the country’s then domestic currency, the Zimbabwe dollar, worthless.
But a series of more focused and coordinated monetary and fiscal policy management and a return to basic economics has restored stability and market confidence.
The Reserve Bank of Zimbabwe (RBZ) aimed to bring annual ZiG inflation below 20 percent by December 2025, banking on tight monetary policy and foreign currency inflows to sustain stability after initial high annual figures due to base effects. On a month-on-month basis, ZiG inflation remained subdued at 0,2 percent in December, unchanged from November.
ZimStat noted, “Prices as measured by the all-items ZiG CPI, increased by an average rate of 0,2 percent from November 2025 to December 2025.”
Food and non-alcoholic beverages inflation slowed slightly to 0,6 percent, while non-food inflation remained flat at zero percent, suggesting limited price pressures across most sectors.
Economists say the year-on-year trend is more important in assessing stability, especially after the sharp inflation spikes experienced earlier in 2025. ZiG inflation stood at 85,7 percent in April this year, rising to a peak of 95,8 percent by July, before decelerating rapidly to 32,7 percent in October.
Economist Tinevimbo Shava said the latest inflation data pointed to policy credibility gradually being restored.
“What we are seeing is the cumulative effect of sustained tight monetary policy and stricter liquidity controls. Inflation does not fall overnight, but a year-on-year decline to 15 percent shows that speculative behaviour has been significantly reduced,” he said.
Mr Shava added that lower inflation improves planning for both businesses and households.
“When prices are more predictable, companies can price products more accurately, workers can budget better, and savings regain some meaning. That is critical for long-term growth,” he said.
Local entrepreneurs are beginning to feel the positive impact of slower price increases. Mr Kelvin Mombe, a Harare-based entrepreneur, said the easing of inflation had brought a degree of relief to small and medium enterprises.
“Late last year and earlier this year, it was almost impossible to plan. Costs were changing every few weeks. Now, even if prices are still high, the stability helps us restock, set prices and negotiate with suppliers with more confidence,” he said.
Bankers say declining inflation improves financial sector stability and credit conditions. Mr Raymond Madziva, a senior banker, said the trend supported confidence in the monetary system.
“Lower and predictable inflation reduces risks for banks. It allows us to price loans more accurately and extend credit to productive sectors without fear that inflation will quickly erode returns,” he said.
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