Zimbabwe's ZiG annual inflation rate surges to 92,5%

Zimbabwe's local currency, Zimbabwe Gold (ZiG or ZWG), recorded a sharp annual inflation surge of 92.5% in June 2025, up by 0.4 percentage points from May, according to the latest data released by the Zimbabwe National Statistics Agency (Zimstat) on Friday.

While month-on-month inflation in ZiG terms decelerated slightly to 0.3%—down from 0.9% recorded in May—the year-on-year figures revealed a continued upward trajectory in consumer prices, further fuelling public anxiety over the currency's stability and purchasing power.

"The ZWG year-on-year inflation rate (annual percentage change) for the month of June 2025, as measured by the all-items ZWG Consumer Price Index (CPI), was 92.5%," Zimstat reported.

The Reserve Bank of Zimbabwe (RBZ) has attempted to downplay the implications of the rising annual inflation rate, asserting that it has little to no impact on current price levels or consumers' day-to-day purchasing ability.

"The current trend in annual inflation is expected to continue up to September 2025 and decline thereafter to align with the current low and stable monthly inflation," the central bank said in a recent statement. "The current annual inflation will, therefore, not affect consumer purchasing power and value preservation, as inflation impact has already been realized."

However, critics have challenged the RBZ's narrative, warning that the persistent inflation surge reflects deeper structural flaws in the economy. Economists and market watchers say rising inflation undermines confidence in the ZiG, despite short-term monetary stability measures.

Meanwhile, inflation measured in US dollar terms showed a mixed picture. The weighted month-on-month inflation rate for June stood at -0.1%, a marginal decline from 0.0% in May. The weighted year-on-year inflation rate, however, stood at a significant 27.1%.

The US dollar inflation rate for June was -0.2%, an increase from the -0.3% recorded in May. On an annual basis, the US$ inflation rate rose to 14.0%, pointing to broad-based price pressures across both currencies.

Zimstat also revealed new poverty benchmarks for the month, with the Food Poverty Line (FPL) for one person pegged at ZWG 874.23 and the Total Consumption Poverty Line (TCPL) at ZWG 1,280.05.

The surge in annual inflation comes just three months after the introduction of the ZiG in April, raising questions about the new currency's durability and the government's capacity to control runaway prices.