Zimbabwe Gold (ZiG) monthly inflation rate fell by 0,6 percentage points on the May figure to 0,3 percent in June, the Zimbabwe National Statistics Agency (ZimStat) reported, as authorities maintain a stranglehold on measures to keep prices stable.
The rate, however, surged moderately to 95 percent from the inaugural annual rate of 85,7 percent introduced in April, which marked the first anniversary of the introduction of the new domestic in April last year.
Notably, the monthly trend is the most important dynamic in the inflation trend, given that the annual rate is a sum average of the monthly rates over 12 months, meaning sustained low inflation will eventually force the annual rate down.
Zimbabwe’s inflation continues to trend down or moderate within the authorities’ projections on account of the tight fiscal and monetary policy positions of both the Treasury and the central bank, respectively.
The yearly rate matches the elevated annual inflation forecast due to price increases that ensued the devaluation of the domestic currency in October to address exchange rate distortions in the market.
ZimStat said, “The ZWG month-on-month inflation rate was 0,3 percent in June 2025, shedding 0,6 percentage points on the May 2025 rate of 0,9 percent.”
The month-on-month inflation rate is given by the percentage change in the price index of the reference month compared with the index of the previous month.
ZimStat said for June 2025, the ZiG consumer price index (CPI) for housing, water, electricity, gas and other fuels, communication, and transport contributed the most to the month-on-month change in index (inflation rate) by a magnitude of 0,3 percent.
The US dollar inflation rate remained subdued.
ZimStat reported that the US dollar month-on-month inflation rate of 0,2 percent in June 2025, slightly gaining 0,1 percentage points on the May 2025 rate of -0,3 percent.
“For the month of June 2025, the US dollar CPI for food and non alcoholic beverages contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of -0,2 percent,” ZimStat said.
In a combined picture, the Weighted Consumer Price Index, which measures price changes in both US dollar and ZiG currencies, registered a month-on-month inflation rate of -0,1 percent in June 2025, shedding 0,1 percentage points on the May 2025 rate of 0,0 percent.
Economists are cautiously optimistic about the trajectory of inflation and the RBZ’s policy stance.
Harare-based economist Dr Prosper Chitambara noted, “I think we are in the right direction, though we need to sustain the gains that were made.
“We are seeing some measure of stability, but that needs to be sustained through continued implementation of the conservative monetary and fiscal policies and continued enhancement of efficiency in public spending.”
Dr Chitambara said there was also a need to expedite the institutional reform agenda in line with the recommendations from the International Monetary Fund (IMF).
Another economist, Mr George Nhepera, said: “The general comment we are hearing from the central bank and Government is that inflation is likely to start reducing in September 2025 going forward.”
“Our recommendation is that we avoid as a country any unexpected depreciation or devaluation of the currency, which in my view could trigger a sudden rise in inflation and general prices, especially in local currency.”
Meanwhile, the Reserve Bank of Zimbabwe (RBZ) maintains that the high annual inflation is inevitable following the sharp exchange rate correction implemented in September 2024.
At the time, the central bank devalued the local currency to curb parallel market activity and boost foreign currency inflows, causing a temporary spike in prices.
The RBZ, however, remains optimistic that inflation will gradually decline over the coming months.
It projects that annual inflation will moderate to around 20 percent by the end of the fourth quarter of 2025, anchored by a tight monetary policy, increased market discipline, and growing confidence in the structured currency framework
