Zimbabwe's inflation continues downward trend

Zimbabwe's monthly and annual inflation rates continued to decline in November, reflecting the effects of the central bank's tight monetary policy measures. The Reserve Bank of Zimbabwe has maintained a restrictive stance since last year, keeping the policy rate at 35% to curb speculative borrowing, a key driver of excess liquidity and parallel market activity.

As a result, the exchange rate premium has remained stable for over a year, while annual inflation has fallen by more than half, reaching 32.7% in October. Latest figures from the Zimbabwe National Statistics Agency (ZimStat) show that the all-items ZWG Consumer Price Index (CPI) increased by just 0.2% from October to November 2025.

"The November 2025 ZWG month-on-month non-food inflation rate was 0.0 percent, gaining 0.9 percentage points from the October rate of -0.9 percent. The ZWG year-on-year inflation rate for November 2025, as measured by the all-items ZWG CPI, was 19.0 percent, shedding 13.7 percentage points from the October 2025 rate of 32.7 percent," ZimStat reported.

Food and Non-Alcoholic Beverages inflation for the month remained steady at 0.7%, unchanged from October. Meanwhile, USD-denominated inflation showed marginal movement, with the month-on-month rate at 0.2% in November, slightly down from 0.3% in October. The USD year-on-year inflation rate rose slightly to 13.1% from 13.0% in October.

The data underscores the impact of sustained monetary discipline in stabilising prices and reinforcing confidence in both the local currency and broader economic environment.