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Zimbabwe's July inflation shows mixed trends
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The latest inflation figures released by the Zimbabwe National Statistics Agency (ZIMSTAT) for July 2025 show a modest rise in prices for goods and services measured in both the United States Dollar (USD) and Zimbabwe Gold (ZiG), with notable variations in monthly and annual inflation trends.
According to the data, the month-on-month inflation rate for the USD rose to 0.3 percent in July 2025, marking a 0.5 percentage point increase from -0.2 percent in June. This indicates a return to modest price increases for USD-based transactions after a brief period of deflation.
Within the USD categories, the Food and Non-Alcoholic Beverages inflation rate improved to -0.3 percent, gaining 0.4 percentage points from the previous month's -0.7 percent, signaling easing price declines in essential food items. Meanwhile, non-food inflation in USD terms rose to 0.5 percent, up from 0.0 percent in June.
On an annual basis, the year-on-year USD inflation rate stood at 14.4 percent in July, meaning prices in USD increased by that margin between July 2024 and July 2025. The average monthly USD inflation rate for the first seven months of 2025 was recorded at 1.7 percent.
In contrast, the Zimbabwe Gold (ZiG) currency saw a sharper rise in prices. The month-on-month ZiG inflation rate jumped to 1.6 percent in July 2025, up from 0.3 percent in June — a 1.3 percentage point gain. This suggests mounting inflationary pressures in local currency transactions.
Within ZiG inflation categories, Food and Non-Alcoholic Beverages inflation moved to 0.2 percent in July, rising from -0.2 percent the previous month. However, non-food inflation in ZiG terms experienced a significant surge to 2.3 percent, a steep increase from 0.5 percent in June.
Most strikingly, the year-on-year ZiG inflation rate hit 95.8 percent, showing that prices in ZiG have nearly doubled compared to July 2024. The average month-on-month ZiG inflation rate for the January to July 2025 period stood at 2.0 percent.
The inflation divergence between USD and ZiG continues to highlight the dual-price economy's complexity in Zimbabwe, where the USD offers relatively stable purchasing power, while the ZiG faces persistent inflationary pressures. Economists suggest these figures will be critical in shaping monetary policy and price stability measures in the months ahead.
According to the data, the month-on-month inflation rate for the USD rose to 0.3 percent in July 2025, marking a 0.5 percentage point increase from -0.2 percent in June. This indicates a return to modest price increases for USD-based transactions after a brief period of deflation.
Within the USD categories, the Food and Non-Alcoholic Beverages inflation rate improved to -0.3 percent, gaining 0.4 percentage points from the previous month's -0.7 percent, signaling easing price declines in essential food items. Meanwhile, non-food inflation in USD terms rose to 0.5 percent, up from 0.0 percent in June.
On an annual basis, the year-on-year USD inflation rate stood at 14.4 percent in July, meaning prices in USD increased by that margin between July 2024 and July 2025. The average monthly USD inflation rate for the first seven months of 2025 was recorded at 1.7 percent.
In contrast, the Zimbabwe Gold (ZiG) currency saw a sharper rise in prices. The month-on-month ZiG inflation rate jumped to 1.6 percent in July 2025, up from 0.3 percent in June — a 1.3 percentage point gain. This suggests mounting inflationary pressures in local currency transactions.
Within ZiG inflation categories, Food and Non-Alcoholic Beverages inflation moved to 0.2 percent in July, rising from -0.2 percent the previous month. However, non-food inflation in ZiG terms experienced a significant surge to 2.3 percent, a steep increase from 0.5 percent in June.
Most strikingly, the year-on-year ZiG inflation rate hit 95.8 percent, showing that prices in ZiG have nearly doubled compared to July 2024. The average month-on-month ZiG inflation rate for the January to July 2025 period stood at 2.0 percent.
The inflation divergence between USD and ZiG continues to highlight the dual-price economy's complexity in Zimbabwe, where the USD offers relatively stable purchasing power, while the ZiG faces persistent inflationary pressures. Economists suggest these figures will be critical in shaping monetary policy and price stability measures in the months ahead.
Source - the Chronicle
