By A Correspondent
Zimbabwe’s annual inflation, measured in Zimbabwe Gold (ZiG), rose to 92.5% in June 2025, according to new data from the Zimbabwe National Statistics Agency (Zimstat) released Friday. The figure marks a slight increase from 92.1% in May and 85.7% in April, underlining the country’s ongoing economic turmoil and persistent cost-of-living pressures.
While annual inflation remains alarmingly high, month-on-month inflation eased to 0.3% in June, down from 0.9% in May, offering a modest sign of short-term price stability.
Zimstat attributed the rise in annual inflation to surging costs in rentals, water, fuel, and communication services — basic necessities that continue to stretch household incomes amid Zimbabwe’s worsening economic climate.
“The ZWG month-on-month inflation rate was 0.3% in June 2025, shedding 0.6 percentage points on the May 2025 rate of 0.9%,” Zimstat said.
“The ZWG year-on-year inflation rate (annual percentage change) for the month of June 2025, as measured by the all-items ZWG Consumer Price Index (CPI), was 92.5%.”
Prices denominated in U.S. dollars also showed signs of strain, with annual USD inflation ticking up to 14% in June, up from 13.9% in May. However, month-on-month USD inflation remained in negative territory at -0.2%, compared to -0.3% the previous month — a marginal improvement.
Zimstat noted that food and non-alcoholic beverages were the key drivers behind the modest USD price increases.
The data also highlighted the rising cost of basic survival in Zimbabwe. In June, the Food Poverty Line (FPL) for one person stood at ZiG 874.23, while the Total Consumption Poverty Line (TCPL) was ZiG 1,280.05 — a sobering reflection of deepening economic strain for the average citizen.
Despite these figures, the Reserve Bank of Zimbabwe (RBZ) has called on the public to remain calm, urging them to “disregard the sharp annual ZiG inflation rates,” arguing that they do not accurately reflect real-time price dynamics in the market.
Looking ahead, the RBZ projects that ZiG inflation will stay elevated until September, after which it expects a gradual decline, potentially reaching 30% by year-end.
The rising inflation and falling currency come at a time when many Zimbabweans are struggling to make ends meet, with salaries lagging far behind rising prices — yet another reminder of the fragile economic conditions gripping the country.