Zimbabwe’s monthly inflation rate slowed significantly to 3.7% in December 2024, down from 11.7% in November, according to data released on Friday by the Zimbabwe National Statistics Agency (ZIMSTAT).
The latest figures show a continued downward trend in inflation, which peaked at 37.2% in October before declining in the subsequent months. ZIMSTAT attributes this improvement to the stabilisation of both prices and the local currency, the Zimbabwe Gold (ZiG), following a 43% devaluation by the central bank in September.
In annual terms and measured in USD, inflation also declined, dropping to 2.5% in December from 3.3% in November.
Finance Minister Mthuli Ncube, presenting the 2025 national budget to Parliament in November, projected that month-on-month inflation for ZiG would average below 3% next year. He credited this expected stability to tight fiscal and monetary policies designed to foster a favourable economic environment.
“The 2025 fiscal plan is built on single-digit inflation and a stable exchange rate,” said Ncube. “Any deviation from these assumptions, including the widening of the premium between the official and parallel markets, will severely impact macroeconomic stability.”
The government has maintained strict fiscal discipline and currency management strategies, aiming to sustain the positive momentum in inflation control and overall economic performance.
This marked improvement in inflation rates signals a promising start for the country’s efforts to achieve economic stability in 2025.
