Yesha
Member
- Jan 28, 2026
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ZIMBABWE RECORDS LOWEST INFLATION RATE SINCE 1980
HARARE — Zimbabwe’s annual inflation measured in the local Zimbabwe Gold (ZiG) currency has fallen to 2.9% in August 2026, marking the lowest single-digit inflation rate recorded in the country since independence in 1980.
The latest figure, released by the Zimbabwe National Statistics Agency (ZIMSTAT), represents a further decline from the 3.2% recorded in July and extends Zimbabwe’s run of single-digit ZiG inflation to eight consecutive months.
Monthly ZiG inflation remained at 0.1% in August, unchanged from July, indicating that prices continued to rise only marginally during the month.
In US dollar terms, annual inflation stood at 3.1%, while monthly US dollar inflation fell to 0.0% from 0.3% in July. ZIMSTAT attributed the continued low inflation rates in both currencies to exchange-rate stability.
The latest figures mark a dramatic change from a year ago. ZiG annual inflation stood at 93.8% in August 2025, meaning the rate has fallen by more than 90 percentage points over the past year.
The Reserve Bank of Zimbabwe (RBZ) has described the 2.9% reading as a milestone, saying the sustained period of low inflation reflects the impact of policies aimed at achieving price, currency and exchange-rate stability.
The central bank noted that ZiG inflation remained below 5% throughout the first eight months of 2026, averaging about 4% over the period.
The improvement is also significant for Zimbabwe’s efforts to build confidence in the ZiG, which was introduced in April 2024 as the country sought to establish a more stable domestic currency.
However, the low inflation figure does not mean prices have fallen. Rather, it means prices are increasing at a much slower rate than before.
The latest figures also come as Zimbabwe continues operating under a multi-currency system, with the US dollar remaining widely used alongside the ZiG.
According to the RBZ, maintaining single-digit inflation for 24 consecutive months is among the conditions required before Zimbabwe can transition from the current multi-currency system to exclusive use of the ZiG.
The August figures therefore represent an important milestone for Zimbabwe’s monetary authorities, but the longer-term test will be whether the country can sustain price stability, strengthen confidence in the ZiG and translate lower inflation into improved purchasing power for households and businesses.
HARARE — Zimbabwe’s annual inflation measured in the local Zimbabwe Gold (ZiG) currency has fallen to 2.9% in August 2026, marking the lowest single-digit inflation rate recorded in the country since independence in 1980.
The latest figure, released by the Zimbabwe National Statistics Agency (ZIMSTAT), represents a further decline from the 3.2% recorded in July and extends Zimbabwe’s run of single-digit ZiG inflation to eight consecutive months.
Monthly ZiG inflation remained at 0.1% in August, unchanged from July, indicating that prices continued to rise only marginally during the month.
In US dollar terms, annual inflation stood at 3.1%, while monthly US dollar inflation fell to 0.0% from 0.3% in July. ZIMSTAT attributed the continued low inflation rates in both currencies to exchange-rate stability.
The latest figures mark a dramatic change from a year ago. ZiG annual inflation stood at 93.8% in August 2025, meaning the rate has fallen by more than 90 percentage points over the past year.
The Reserve Bank of Zimbabwe (RBZ) has described the 2.9% reading as a milestone, saying the sustained period of low inflation reflects the impact of policies aimed at achieving price, currency and exchange-rate stability.
The central bank noted that ZiG inflation remained below 5% throughout the first eight months of 2026, averaging about 4% over the period.
The improvement is also significant for Zimbabwe’s efforts to build confidence in the ZiG, which was introduced in April 2024 as the country sought to establish a more stable domestic currency.
However, the low inflation figure does not mean prices have fallen. Rather, it means prices are increasing at a much slower rate than before.
The latest figures also come as Zimbabwe continues operating under a multi-currency system, with the US dollar remaining widely used alongside the ZiG.
According to the RBZ, maintaining single-digit inflation for 24 consecutive months is among the conditions required before Zimbabwe can transition from the current multi-currency system to exclusive use of the ZiG.
The August figures therefore represent an important milestone for Zimbabwe’s monetary authorities, but the longer-term test will be whether the country can sustain price stability, strengthen confidence in the ZiG and translate lower inflation into improved purchasing power for households and businesses.
