The monthly inflation rate of the Zimbabwe Gold (ZiG) — the country’s new currency — dropped to 0.3% in June, a 0.6 percentage point decrease from May’s rate of 0.9%, according to the Zimbabwe National Statistics Agency (ZimStat), which highlighted ongoing efforts to stabilize prices.
According to The Herald news portal, despite the monthly decline, annual inflation rose to 95%, up from 85.7% recorded in April. ZimStat explained that this increase results from the cumulative effect of average monthly rates over a 12-month period and is linked to the currency depreciation in October 2024.
Zimbabwean authorities emphasized that the downward monthly trend is more relevant, as sustained low inflation will eventually drive down the annual rate. This progress is attributed to the tight fiscal and monetary policies implemented by the government and the Reserve Bank of Zimbabwe (RBZ).
ZimStat noted that the main sectors driving ZiG inflation in June were housing, water, electricity, gas, fuels, communication, and transport, which collectively contributed a 0.3% increase to the Consumer Price Index (CPI).
For the US dollar, monthly inflation stood at 0.2% in June, a slight rise from -0.3% in May. Prices for food and non-alcoholic beverages had the largest impact, with a -0.2% contribution to monthly variation. When combining data from both currencies — ZiG and the US dollar — the Weighted Consumer Price Index recorded a monthly inflation rate of -0.1% in June, slightly below 0.0% in May, indicating overall price stability.
Economists say that maintaining the downward inflation trajectory will depend on the continuation of current conservative fiscal and monetary policies, as well as exchange rate discipline and confidence in the newly adopted monetary system.
Source: DE
