Zimbabwe’s annual inflation rate could drop to half of current levels by the end of 2025, driven by the stability of the local currency and high gold prices, according to a report released on Monday (Nov. 3) by the Confederation of Zimbabwe Industries (CZI).
According to Reuters, the country’s annual inflation rate, measured in Zimbabwe Gold (ZiG), fell sharply to 32.7% in October, down from 82.7% in September.
The CZI projects a further decline in inflation, which could settle between 15% and 20% by December 2025. This outlook is attributed to negative monthly inflation observed in recent months and the strength of the ZiG, which has been supported by rising gold prices.
“The policy target is to achieve an annual inflation rate in ZiG of around 30%. The negative month-on-month inflation recorded over the past two months has increased the likelihood of this happening,” the CZI said in its October 2025 update on inflation and exchange rate developments.
The CZI, Zimbabwe’s main business association representing the industrial and manufacturing sectors, publishes independent macroeconomic data used by investors as an early indicator of domestic price and currency trends.
The ZiG, a currency partially backed by gold, has remained stable in official markets, with a parallel market premium of about 20%, according to analysts from Oxford Economics.
Gold production in Zimbabwe is expected to surpass the record 38.4 tonnes reached in 2024, supported by high global gold prices, the analysts added.
Zimbabwe has faced persistent inflation and currency instability for more than two decades, with repeated episodes of dollarization undermining confidence in the local currency.
A sustained decline in inflation would represent a critical step toward restoring economic policy credibility and supporting the economic recovery of the southern African nation.
Source: Reuters
