By Business Reporter-Zimbabwe’s local currency, the Zimbabwe Gold (ZiG), returned to positive monthly inflation in April 2025, with the Zimbabwe National Statistics Agency (ZimStat) reporting a 0.6% increase, up from -0.1% in March.
The latest figures mark a 0.7 percentage point rise, ending a brief spell of deflation and signalling growing pressure on the new currency, which was introduced in April 2024.
According to ZimStat, prices measured by the all-items ZiG Consumer Price Index (CPI) rose on average by 0.6% between March and April 2025.
The ZiG CPI now stands at 185.68, up from 184.50 in March, and sharply higher than the base of 100.00 a year ago.
The year-on-year inflation rate for ZiG-denominated prices in April was recorded at 85.7%, reflecting the first official annual inflation measurement since the currency’s launch.
The high figure is largely attributed to price surges following the October 2024 devaluation of the local currency, reinforcing concerns over ZiG’s waning purchasing power.
In contrast, US dollar inflation remained relatively stable. ZimStat reported a USD month-on-month inflation rate of 0.2% in April, up slightly from 0.1% in March.
The USD CPI rose modestly from 121.87 to 122.12 during the same period, with food prices largely unchanged and non-food items rising by 0.3%.
On an annual basis, the USD inflation rate stood at 14.4%, highlighting the stark difference between prices measured in ZiG and those in the more stable US dollar.
ZimStat also published the Weighted Consumer Price Index (CPI), which captures price changes across both ZiG and USD transactions.
In April 2025, the weighted month-on-month inflation rate was 0.3%, compared to 0.0% in March, with the weighted CPI inching up to 126.18 from 125.84. The weighted annual inflation rate stood at 26.2%.
Meanwhile, the cost of living continues to rise.
The Food Poverty Line (FPL)—the minimum monthly amount required to meet basic food energy needs—was ZWG 862.06 per person in April, while the Total Consumption Poverty Line (TCPL), which covers both food and essential non-food items, rose to ZWG 1,263.41 per person.
The uptick in inflation and the weakening of ZiG have reignited fears of a return to economic instability, with analysts warning that confidence in the local currency remains fragile as price pressures mount.