Zimbabwe inflation drops again

Zimbabwe's annual inflation rate for the Zimbabwe Gold currency (ZWG), commonly known as ZiG, eased to 3.8% in February 2026, signalling continued price stability under the country's tight monetary policy framework.

According to the latest data released by the Zimbabwe National Statistics Agency (Zimstat), the annual inflation rate declined by 0.3 percentage points from 4.1% recorded in January. This means prices, as measured by the all-items ZWG Consumer Price Index (CPI), increased by an average of 3.8% between February 2025 and February 2026.

Month-on-month inflation remained largely stable, inching up to 0.1% in February from 0.0% in January. Zimstat said this indicates that prices rose at an average rate of 0.1% between January and February 2026.

Food prices provided some relief during the period. The month-on-month Food and Non-Alcoholic Beverages inflation rate fell to -0.1% in February, a 0.2 percentage point drop from the 0.1% recorded in January, reflecting easing pressures on basic commodities.

However, non-food inflation showed modest increases. The non-food month-on-month inflation rate rose to 0.3% in February, up from -0.1% in January, gaining 0.4 percentage points.

Inflation measured in United States dollars also remained subdued. The USD month-on-month inflation rate stood at 0.1% in February, down from 0.2% in January. On an annual basis, USD inflation slowed to 0.9% from 1% in the previous month.

The weighted month-on-month inflation rate remained steady at 0.1%, while the weighted annual inflation rate was recorded at 1.6%, according to the weighted CPI.

Economic analysts attribute the sustained price stability to firm monetary discipline by the Reserve Bank of Zimbabwe, which has significantly tightened money supply growth. Authorities reportedly reduced money supply expansion from around 100% to below 1% in early 2025.

High interest rates, currently hovering around 35%, have further dampened speculative borrowing and curtailed excess liquidity in the parallel market, reinforcing both currency and price stability.

The relative stability of the ZiG since late 2025 has also been supported by strong gold prices and increased commodity-backed reserves, strengthening confidence in the currency.

With annual inflation now below 4% and monthly price movements remaining subdued, policymakers appear determined to maintain their tight stance in a bid to cement long-term macroeconomic stability.