Zimbabwe's weighted inflation rate hits 0% in May

Zimbabwe's monthly weighted average inflation rate fell to 0 percent in May 2025, marking a significant step toward economic stability and price predictability across both local and foreign currency markets.

According to data released by the Zimbabwe National Statistics Agency (ZimStat), the drop represents a 0.3 percentage point decrease from April's rate, as inflation trends in both the US dollar (USD) and the Zimbabwe Gold (ZiG) currency adjusted in opposite directions.

The USD month-on-month inflation rate declined by 0.5 percentage points to -0.3 percent in May, down from 0.2 percent in April. In contrast, the ZiG month-on-month inflation rate climbed by 0.3 percentage points, reaching 0.9 percent from April's 0.6 percent.

Despite the contrasting trends between the two currencies, the weighted inflation rate dropped overall, reinforcing growing confidence in the country's efforts to restore macroeconomic stability.

Presenting the May inflation figures on Tuesday, ZimStat acting director of macroeconomics, Mr. Munyaradzi Chikadaya, highlighted key changes in the Consumer Price Index (CPI).

"The USD Consumer Price Index was 121.76 in May 2025 compared to 122.12 in April 2025. In May 2024, the index stood at 106.85. Meanwhile, the ZiG Consumer Price Index rose to 187.42 in May 2025 from 185.68 in April and 97.58 in May 2024," said Chikadaya.

Sector-specific data showed further evidence of easing price pressures. The food and non-alcoholic beverages category, measured in USD, posted a month-on-month deflation of -0.9 percent in May, down from a flat 0.0 percent in April. Similarly, the USD month-on-month non-food inflation rate fell to 0.0 percent from 0.3 percent in April.

Economists have welcomed the latest figures as a positive signal for fiscal and monetary authorities, suggesting that recent policy interventions-such as the introduction of the structured currency regime and tighter liquidity controls-are beginning to yield tangible results.

The developments offer renewed hope for consumers and businesses alike, as the country pushes for sustained price stability, investor confidence, and long-term economic recovery.