CZI sees ZiG inflation dropping to 20 percent by year-end

The Confederation of Zimbabwe Industries believes authorities can meet their goal of keeping annual inflation for the ZiG currency near 30 percent. October data showed year-over-year ZiG inflation fell dramatically to 32.7 percent from September’s 82.7 percent figure. This improvement followed three straight months of declining prices measured monthly.

Industry analysts noted monthly price decreases reached 0.4 percent in October, the lowest level recorded this year. They projected annual inflation could drop further to between 15 percent and 20 percent by year’s end if current trends continue. The Reserve Bank of Zimbabwe and the Finance Ministry have maintained strict monetary policies since introducing ZiG in April 2024 to support currency stability backed by gold reserves. Officials aim to reduce annual inflation below 30 percent before 2026 begins.

Consumer purchasing power improved slightly as goods became more affordable when priced in ZiG. Currency stability remains essential for government plans to establish a single national currency system starting in 2030. Meanwhile, US dollar inflation rose slightly to 0.3 percent monthly but remained at 13 percent annually. The ZiG currency held steady on both official and informal markets during October, with parallel market rates staying around 20 percent above official levels.