Online Reporter
Oliver Kazunga
Senior Reporter
ZIMBABWE has managed to keep inflation within single digits despite mounting global economic shocks triggered by the Middle East tension, with the Confederation of Zimbabwe Industries (CZI) saying this reflects strong inflation management measures by monetary authorities.
In its Inflation and Currency Developments Report for April 2026, CZI said that while price pressures are beginning to intensify, annual inflation remains relatively contained compared to the severe volatility many economies are experiencing following escalating geopolitical tensions in the Middle East.
The industrial lobby group said: “The April 2026 inflation data is expected to have captured the full effect of the war-induced price increases.
“Thus, the fact that inflation has remained within single digits despite the external shocks reflects that the inflation management aspect of monetary policy is strong.”
According to the report, year-on-year ZiG inflation rose marginally by 0,4 percentage points to 4,8 percent in April from 4,4 percent recorded in March.
However, CZI said month-on-month inflation accelerated more sharply to 1,1 percent from 0,5 percent previously, signalling growing short-term price pressures largely linked to rising fuel and transport costs.
The figures show that while inflation remains contained, imported fuel and transport costs are beginning to exert pressure on prices.
CZI attributes the latest price increases directly to the ongoing Middle East conflict, which has disrupted global fuel markets and increased operating costs across several sectors.
“Month-on-month ZiG inflation accelerated to 1,1 percent in April 2026, up from 0,5 percent recorded in March 2026, signalling a renewed build-up of short-term price pressures in the economy.
“This acceleration, a direct result of the Israel-US-Iran war, has direct implications for businesses,” it said.
Among the products recording the sharpest increases were gas, which rose by 12,4 percent, fuels and lubricants for personal transport equipment at 9,5 percent, transport services at 7,5 percent and recording media at five percent.
“However, the war is not yet over, and in the outlook, inflation risks remain tilted to the upside,” said CZI.
“Any further adjustments in fuel prices, alongside persistent supply side constraints, could sustain upward pressure on prices in the coming months.”
It is hoped that the continued stability of annual inflation below five percent may strengthen confidence in Zimbabwe’s monetary policy framework, particularly at a time when external shocks are intensifying globally.
CZI said authorities now need to maintain current inflation control measures to prevent a further escalation in prices.
“Therefore, the monetary authorities need to ensure that they maintain their current inflation control mechanisms,” it said.
Meanwhile, exchange rate pressures are also beginning to emerge, with the ZiG appreciating marginally by 0.9 percent on the official market while depreciating by about 4,2 percent on the parallel market between March and April.
This widened the exchange rate premium from below 20 percent to nearly 25 percent as businesses increasingly turned to the parallel market to access foreign currency for imports and operational requirements.
“The widening premium can be attributed to heightened demand for foreign currency, as businesses increasingly turn to the parallel market to meet immediate payment obligations,” said the industrial lobby group.
Therefore, CZI urged businesses to strengthen their cost-management strategies, improve energy efficiency and optimise supply chains to cushion themselves against continued inflationary pressures expected to spill into next month.
Oliver Kazunga
Senior Reporter
ZIMBABWE has managed to keep inflation within single digits despite mounting global economic shocks triggered by the Middle East tension, with the Confederation of Zimbabwe Industries (CZI) saying this reflects strong inflation management measures by monetary authorities.
In its Inflation and Currency Developments Report for April 2026, CZI said that while price pressures are beginning to intensify, annual inflation remains relatively contained compared to the severe volatility many economies are experiencing following escalating geopolitical tensions in the Middle East.
The industrial lobby group said: “The April 2026 inflation data is expected to have captured the full effect of the war-induced price increases.
“Thus, the fact that inflation has remained within single digits despite the external shocks reflects that the inflation management aspect of monetary policy is strong.”
According to the report, year-on-year ZiG inflation rose marginally by 0,4 percentage points to 4,8 percent in April from 4,4 percent recorded in March.
However, CZI said month-on-month inflation accelerated more sharply to 1,1 percent from 0,5 percent previously, signalling growing short-term price pressures largely linked to rising fuel and transport costs.
The figures show that while inflation remains contained, imported fuel and transport costs are beginning to exert pressure on prices.
CZI attributes the latest price increases directly to the ongoing Middle East conflict, which has disrupted global fuel markets and increased operating costs across several sectors.
“Month-on-month ZiG inflation accelerated to 1,1 percent in April 2026, up from 0,5 percent recorded in March 2026, signalling a renewed build-up of short-term price pressures in the economy.
“This acceleration, a direct result of the Israel-US-Iran war, has direct implications for businesses,” it said.
Among the products recording the sharpest increases were gas, which rose by 12,4 percent, fuels and lubricants for personal transport equipment at 9,5 percent, transport services at 7,5 percent and recording media at five percent.
“However, the war is not yet over, and in the outlook, inflation risks remain tilted to the upside,” said CZI.
“Any further adjustments in fuel prices, alongside persistent supply side constraints, could sustain upward pressure on prices in the coming months.”
It is hoped that the continued stability of annual inflation below five percent may strengthen confidence in Zimbabwe’s monetary policy framework, particularly at a time when external shocks are intensifying globally.
CZI said authorities now need to maintain current inflation control measures to prevent a further escalation in prices.
“Therefore, the monetary authorities need to ensure that they maintain their current inflation control mechanisms,” it said.
Meanwhile, exchange rate pressures are also beginning to emerge, with the ZiG appreciating marginally by 0.9 percent on the official market while depreciating by about 4,2 percent on the parallel market between March and April.
This widened the exchange rate premium from below 20 percent to nearly 25 percent as businesses increasingly turned to the parallel market to access foreign currency for imports and operational requirements.
“The widening premium can be attributed to heightened demand for foreign currency, as businesses increasingly turn to the parallel market to meet immediate payment obligations,” said the industrial lobby group.
Therefore, CZI urged businesses to strengthen their cost-management strategies, improve energy efficiency and optimise supply chains to cushion themselves against continued inflationary pressures expected to spill into next month.
