Online Reporter
Sikhulekelani Moyo
THE Consumer Council of Zimbabwe (CCZ) has commended the prevailing economic stability, saying it makes basic commodities more affordable, resulting in improved consumer welfare and peace of mind.
This comes as the Government’s ongoing policy reforms have engendered economic stability, critical to drive growth across key sectors and improved consumer welfare occasioned by a stable exchange rate and pricing predictability.
Zimbabwe has witnessed durable stability since the central bank issued a new currency, Zimbabwe Gold, in April last year.
Tight fiscal and monetary policy stance by the central bank and Treasury have limited the amount of excess liquidity finding its way into the market for speculation.
This has seen the exchange rate remaining largely unchanged while inflation, especially the monthly rate, has been trending down and remains within the bands set by the monetary authorities.
Zimbabwe’s local currency inflation returned to positive monthly inflation in April 2025, rising to 0,6 percent, up from -0,1 percent in March.
In contrast, inflation in US dollars remained subdued.
ZimStat reported a month-on-month US dollar inflation rate of 0,2 percent in April, slightly higher than the 0,1 percent in March.
The central bank also says the stock of foreign currency reserves backing the domestic currency has spiked from nearly US$300 million to US$7001 million, which has enhanced confidence in the local unit.
Informed by routine surveys that monitor the prices and availability of essential goods, the Government is proactively ensuring that consumers have access to vital information and support, as well as protection from predatory business practices.
Responding to questions sent from Zimpapers Business Hub, CCZ executive director Ms Rose Mpofu said Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu listened to consumers, that’s why the nation is experiencing this stability.
She said consumers submitted a document towards the last RBZ Monetary Policy Statement, which she said most of the requests by consumers were taken on board.
“Everyone is experiencing the stability, even businesses, although they say it’s an artificial stability, for various reasons,” said Ms Mpofu.
“But at the end of the day, if everyone is experiencing a stable economic environment, children going to school, everyone finding food on their table, health delivery work in progress, road networks improving, electricity situation improving, local authority services pushed to deliver and working in progress, as consumers we believe we are heading for better quality standard of living.
“This can only happen if all sectors keep their eyes on the ball, for the same goal, towards an upper-middle-income society. Let the consumer voice be heard when policies are made.”
Experts have also applauded the Government’s tight monetary policy stance, stating that it has subdued inflation and anchored exchange rate stability.
Tight monetary policy involves limiting the money supply and credit availability by raising interest rates, while tight fiscal policy entails reducing Government spending, thus limiting the liquidity available to chase goods and services.
Zimbabwe’s economy has previously suffered from excessive money creation through various channels, including the Government’s access to the central bank window to fund key public programmes.
According to the Zimbabwe National Statistics Agency (Zimstat), the weighted average monthly inflation rate recorded a notable decline in May, dropping by 0,3 percentage points to 0 percent.
The US dollar’s month-on-month inflation rate fell to -0,3 percent in May, a 0,5 percentage point decrease from April’s 0,2 percent. However, the Zimbabwe Gold (ZIG) month-on-month inflation rate rose to 0,9 percent in May, up 0,3 percentage points from April’s 0,6 percent.
