By A Correspondent
The Reserve Bank of Zimbabwe (RBZ) has warned that inflation will remain elevated until at least September 2025, before easing to around 30% by year-end, following months of currency instability and transitional challenges linked to the introduction of the ZiG.
RBZ Governor John Mushayavanhu made the revelation while addressing recent inflation figures, which show annual ZiG inflation climbing from 85.7% in April to 92.1% in May 2025. Monthly inflation also inched up, from 0.6% in April to 0.9% in May.
“The Reserve Bank has been closely monitoring and anticipating the recent movements in year-on-year ZiG inflation, which rose from 85.7% in April to 92.1% in May 2025, primarily owing to a once-off shock experienced in September 2024,” Mushayavanhu said.
He urged the public to pay closer attention to month-on-month inflation trends, which have remained “relatively low and stable at less than 1% over the last three months,” rather than focusing solely on year-on-year figures.
Mushayavanhu explained that the Zimbabwe National Statistics Agency (ZIMSTAT) only began computing annual ZiG inflation in April 2025, once a full year of price data in the new currency became available.
“ZIMSTAT has been reporting month-on-month ZiG inflation without annual inflation due to the absence of comparable ZiG denominated price developments on an annual basis in 2023. The transition from Zimbabwe dollar (ZWL) to ZiG prices inevitably created a statistical gap in the calculation of annual ZiG inflation figures,” he noted.
The sharp rise in annual inflation, he said, was largely due to the “base effect” caused by a dramatic jump in monthly inflation from 5.8% in September 2024 to 37.2% in October 2024.
“The Reserve Bank, therefore, advises the public that the recorded rise in year-on-year ZiG inflation in April and May 2025 is primarily due to the base effect emanating from the once-off spike in month-on-month inflation,” Mushayavanhu stated.
Despite these challenges, the central bank remains optimistic that inflation will begin to slow after September, provided the macroeconomic environment remains stable and the ZiG regains public trust.