Zimbabwe records rare single-digit inflation

Zimbabwe has recorded its first single-digit local-currency inflation in over two decades, according to official data, marking a significant milestone for the country's economic trajectory. The last time inflation dipped this low was in 2018, when local prices were effectively pegged at parity with the US dollar.

The Zimbabwean dollar inflation rate (ZiG) slowed to 4.1% in January, down sharply from 15% in December and 19% in November 2025. While prices continue to rise, the pace is markedly slower than in recent months, providing relief to households and businesses grappling with previous high inflation.

Surprisingly, US dollar inflation also eased sharply, falling to 1% from 12.4% the previous month, underscoring broad-based moderation in price pressures across both currencies.

Analysts attribute the slowdown to tighter monetary policies, improved supply chain conditions, and relative stability in foreign currency markets. The decline in inflation is expected to ease cost-of-living pressures and may restore some confidence among consumers and investors.

While single-digit inflation is a rare achievement for Zimbabwe, experts caution that sustaining it will require continued policy consistency, fiscal discipline, and measures to increase domestic production to prevent imported price shocks.

This development signals a potentially new chapter for Zimbabwe's economy, offering a glimmer of stability after years of hyperinflation and currency volatility.