ZiG inflation jumps to 4,4%

Zimbabwe's annual inflation rate for the Zimbabwe Gold (ZiG) currency rose to 4,4% in March, up from 3,8% in February, reflecting growing price pressures largely driven by recent fuel price increases.

According to the Zimbabwe National Statistics Agency, the increase of 0,6 percentage points aligns with earlier warnings from the Reserve Bank of Zimbabwe that inflation would remain elevated between March and May.

"The ZiG year-on-year inflation rate for March 2026, as measured by the all-items CPI, was 4,4%," ZimStat said, indicating that prices rose on average by that margin between March 2025 and March 2026.

Month-on-month inflation also edged up to 0,5%, compared to 0,1% in February, with both food and non-food categories contributing to the increase.

Fuel price hikes have been identified as a key driver. On March 18, the Zimbabwe Energy Regulatory Authority raised petrol prices to US$2,17 per litre and diesel to US$2,05, representing increases of nearly 27% and 16%, respectively.

The surge in fuel costs has been linked to global supply disruptions stemming from geopolitical tensions involving the United States, Israel and Iran, which have unsettled international oil markets.

Inflation trends were also evident in US dollar-denominated prices, with annual USD inflation rising to 1,3% in March from 0,9% in February. Month-on-month USD inflation similarly increased to 0,5%.

The impact is beginning to filter through to consumers. The total consumption poverty line for one person rose slightly to ZiG1 312,17 in March, while businesses warn of further price increases.

The Confederation of Zimbabwe Industries said companies are likely to pass rising fuel costs on to consumers. Government has already acknowledged increases in some basic goods, with bread prices rising by about 10% per loaf.

Although authorities have not yet confirmed widespread price hikes across all essentials, consumers have reported increases in items such as mealie-meal, cooking oil and meat products. Transport fares have also risen, adding pressure on household budgets.

In response, government is considering measures to contain inflation, including reviewing selected fuel taxes and increasing ethanol blending ratios in petrol from E5 to E20 to reduce pump prices.

While inflation remains relatively low by Zimbabwe's historical standards, economists warn that sustained increases in fuel and transport costs could gradually erode purchasing power if not effectively managed.