Judith Phiri
Zimpapers Business Hub
Zimbabwe’s local and foreign currency monthly inflation rates fell in October 2026, according to the latest price statistics released by the Zimbabwe National Statistics Agency (ZimStat).
The ZiG month-on-month inflation rate was 0,2 percent in October, shedding 0,3 percentage points on the September rate of 0,5 percent, while the US dollar rate was 0,1 percent, representing a 0,2 percentage point decline on the September rate of 0,3 percent.
ZimStat said the US dollar year-on-year inflation rate for October 2026, as measured by the all-items USD Consumer Price Index (CPI), was 3,2 percent, reflecting a 0,3 percentage point retreat from the prior month’s 3,5 percent rate.
ZimStat statistics manager Mr Thomas Chikadaya said the ZiG year-on-year inflation rate for October 2026 was 4,3 percent, representing a 0,6 percentage point increase on the September 2026 rate of 3,7 percent.
The Reserve Bank of Zimbabwe has projected that annual ZiG inflation will close the year below 5 percent, despite sustained global and domestic price pressures.
Mr Chikadaya said the weighted month-on-month inflation rate was 0,1 percent in October 2026, down 0,2 percentage points on the September 2026 rate of 0,3 percent.
“The weighted year-on-year inflation rate (annual percentage change) for October 2026 as measured by the all-items Weighted Consumer Price Index (CPI) was 3,5 percent, shedding 0,1 percentage points on the September 2026 rate of 3,6 percent,” he said.
The central bank has maintained its tight monetary policy and zero central bank borrowing pledge to anchor single-digit inflation targets through the remainder of the year.
Despite inflation being projected to remain in the single digits until December 2026, price stability is facing multiple headwinds.
Geopolitical disruptions—such as ongoing conflicts in the Middle East—have increased global crude oil and logistical expenses. In Zimbabwe, this has translated into a 12,9 percent year-on-year increase in transport costs, drastically affecting supply chains.
Elevated costs for imported goods put immediate cost-push pressure on local manufacturing and retail sectors.
Mr Chikadaya said price increases in October were mainly observed in the transport services across the ZiG, US dollar and weighted consumer price indices, while varying inflation trends were recorded across the country’s provinces.
On USD provincial inflation rates, Mr Chikadaya said Bulawayo and Matabeleland South recorded the highest month-on-month inflation at 0,3 percent each, followed by Manicaland and Matabeleland North at 0,2 percent each, Mashonaland Central, Mashonaland West, Midlands and Masvingo at 0,1 percent each, as well as Mashonaland East and Harare at zero percent each.
“On the annual USD inflation, Matabeleland South recorded the highest year-on-year inflation rate of 4,2 percent, followed by Masvingo at 3,9 percent, Midlands at 3,7 percent, Mashonaland West at 3,4 percent, Manicaland at 3,3 percent, Bulawayo at 3 percent, Mashonaland Central and Harare at 2,9 percent each, Matabeleland North and Mashonaland East at 2,6 percent each.”
Zimbabwe National Chamber of Commerce Matabeleland Chapter past vice-president and businessman, Mr Louis Herbst, said Zimbabwe’s lower inflation is a positive development and a step towards restoring confidence in the economy.
“Stable prices make it easier for businesses to plan, invest and grow. The priority now is to sustain that stability through sound monetary and fiscal policies.
“However, lower inflation does not mean that prices are lower or that people are necessarily better off. What matters is whether salaries go further, families can afford necessities and businesses can manage the cost of production, particularly energy and finance,” he said.
He said the focus must now shift from stabilising the economy to growing it. “We need more local production, stronger industries, increased investment and sustainable job creation,” Mr Herbst said.
Ultimately, Mr Herbst said, economic progress must be felt in people’s pockets, reflected in thriving businesses and measured by the jobs and opportunities created for Zimbabweans.
