ZIMBABWE’s economic growth agenda is on track, with February figures reflecting progress towards stable prices and increased consumer spending.
According to data from the Zimbabwe National Statistics Agency, Zimbabwe Gold inflation for February dropped by 10% points to 0,5% with the United States Dollar inflation rate also falling by the average of the same margins.
The agency states the trend means that prices as measured by the All Items Consumer Price Index increased by an average of 0,5% between January 2025 and February 2025.
The drop in the inflation rate has set the tone for a promising outlook on price stability.
“The latest data has really ignited that the stability can be managed and that there is that zeal by the relevant authorities to contain inflation,” said Confederation of Zimbabwe Industries Macroeconomics committee chairperson, Mr Jimmy Pscillos.
“While a drop in inflation does not necessarily mean a fall in prices, the current data shows that the rate at which pricing is increasing in Zimbabwe during February this year declined by over 10% points.
“This is a commendable element taking into account the needs of industry for a stable and predictable economic climate that fosters growth and lowers costs of doing business while boosting overall macroeconomic performance by key sectors of the economy at a time when we are expecting food inflation or prices to drop in the second quarter riding on gains emanating from the bumper harvest.”
The fall in inflation is also attributed to the tight monetary policy stance.
“Such a trend can be maintained if the relevant authorities walk the talk in terms of commitment to stabilise the pricing models in the economy, while so far all looks to be good, there is the need to sustain the stability gains by focusing on long-term strategies to guard against the global and local shocks,” RBZ Monetary Policy committee member, Mr Persistence Gwanyanya said.
“So far the trend is pointing to a promising outlook for economic stability aided by the sudden gains in the Zimbabwe Gold against major trading currencies. So going forward, it is the role of the government and the private sector to work together in identifying inflationary pressures and then look at the possible remedies for the benefit of economic value chains.”
Analysts reveal that price stability will continue if the authorities guard against global shocks, curtail excessive liquidity and maintain a predictable exchange rate regime.
The Reserve Bank of Zimbabwe is confident inflation will continue to drop and is projecting the monthly rate to average 3% or less this year.
