Staff Reporter
Zimbabwe’s gold-backed currency (ZiG) recorded a slight rise in monthly inflation for April 2025, rebounding into positive territory at 0,6 percent after a brief dip into deflation (-0,1 percent) in March.
According to the Zimbabwe National Statistical Agency (ZimStat), the annual inflation rate under the ZiG system, officially measured for the first time since its launch in April 2024, stands at 85.7 percent. This elevated figure reflects the aftershocks of the October 2024 currency devaluation, which sought to correct exchange rate distortions.
“This means that prices as measured by the all-items ZiG Consumer Price Index (CPI) increased by an average of 0,6 percent from March 2025 to April 2025. The ZiG CPI rose to 185.68 from 184.50 in March and from the baseline 100.00 in April 2024,” ZimStat reported.
The slight month-on-month increase follows market adjustments triggered by the Government’s 2024 structured currency reforms, aimed at curbing chronic inflation, stabilising the economy, and restoring public confidence.
Meanwhile, inflation in US dollar terms remained low, with a month-on-month rate of 0,2 percent in April, up from 0,1 percent in March.
Food prices in USD terms were stable, while non-food items rose modestly by 0,3 percent. ZimStat noted that the weighted inflation index, which blends ZiG and USD price movements, registered a 0,3 percent rise in April.
Despite tame short-term inflation numbers, the annual rate of 85,7 percent underscores the lingering impact of past monetary turbulence.
However, the Reserve Bank of Zimbabwe (RBZ) remains upbeat, projecting inflation to fall to around 20 percent by the end of 2025, driven by a tight monetary policy and strengthening market discipline.
Economists have welcomed the early signs of stability but caution that challenges remain.
Marlone Gwadi commended the RBZ’s reforms, saying, “This was a bold monetary stance. It is helping to anchor inflation expectations and reduce distortions in the market.”
Economic analyst Persistence Gwanyanya added, “The real risk now is not inflation but weak aggregate demand. Fiscal stimulus is needed to revive the economy.”
Food inflation trends also reveal a mixed picture. While food prices declined by 0,2 percent in ZIG terms in April, suggesting some relief for households, the trend also points to sluggish consumer demand—raising concerns about economic growth prospects.
Economist Dr. Prosper Chitambara stressed the need for complementary fiscal measures stating,” The RBZ has done well to stabilise money supply, but without strong public investment, growth will remain fragile.”
As Zimbabwe adapts to the new monetary reality, policymakers face a balancing act of maintaining disinflation while reigniting the economic stability momentum.
