Online Reporter
Business Reporter
Consumer goods prices are expected to further stabilise in 2026, anchored by manufacturers’ leveraging on exchange rate stability, improved agricultural output and growing use of green energy to enhance cost efficiencies, according to Morgan & Company’s latest report.
The research firm noted in its Zimbabwe Consumer Goods Sector Report 2026 that the easing of inflationary forward-pricing, where producers pre-emptively hike prices in anticipation of exchange rate movement, has been one of the most notable developments since the liberalisation of the foreign exchange market in April 2025.
“The liberalisation of exchange rates in April 2025 by the central bank, has resulted in reverse-engineered USD prices from formal manufacturers receding closer to informal market prices,” said Morgan & Company.
“The stability in exchange rates will prompt an ease in inflationary forward pricing.”
The research firm’s projection tallies with the picture from the central bank’s third quarter macroeconomic snapshot, which noted that monthly local currency inflation had averaged a lowly 0,6 percent since February, while the annual rate is forecast to close the year below 20 percent.
On account of the tight monetary policy thrust, the exchange rate has also stabilised, hovering around 26,7 to the US dollar.
Morgan & Company said prices of manufactured food and beverages were expected to soften in 2026 on account of continued exchange rate stability and lower input costs.
The moderation in inflationary pressures has been further reinforced by a price-sensitive consumer base, compelling producers to maintain affordability to preserve market share.
“Given a price-sensitive consumer goods market, manufacturers will leverage on these positives to enhance cost efficiencies in a bid to cushion the impact of taxes,” the report notes.
Economic analyst, Yemurai Kadimu, said the stabilisation in both formal and informal market prices, was a reflection of growing market confidence.
“For once, manufacturers and consumers are operating in a predictable environment,” Ms Kadimu said. “This stability helps business planning, reduces speculative behaviour and ultimately lowers the inflationary psychology that had gripped the sector.”
