Business Reporter
The Confederation of Zimbabwe Industries (CZI) says the annual inflation target set by the Reserve Bank of Zimbabwe (RBZ) remains within reach, citing consistency in the implementation of inflation containment measures.
According to the Zimbabwe National Statistics Agency (Zimstat), the Zimbabwe Gold (ZWG) currency has maintained notable stability against the US dollar since September 2024, when it last experienced a major dip.
Zimstat data shows that month-on-month inflation stood at -0.2% in September 2025, down by 0.6 percentage points from 0.4% in August 2025.
In its latest inflation tracker, CZI expressed optimism that the RBZ will meet its 2025 inflation target by year-end.
“If ZiG month-on-month inflation continues to grow by less than 1% in the next four months to December 2025, annual inflation is projected to be less than 20% in December 2025,” CZI said.
“This implies that the 2025 Midterm Monetary Policy Statement (MPS) targets, of keeping annual ZiG inflation below 30% and month-on-month inflation between 1% and 3%, are likely to be achieved.”
The industry body noted that between July and late August 2025, the ZiG appreciated on both the official and parallel markets. Despite this, the parallel market premium remained relatively constant at around 27%, indicating some degree of exchange rate convergence.
CZI added that the still-high annual inflation rate largely reflects the September 2024 devaluation of the ZiG, and that inflation pressures are expected to ease further in October 2025, provided no new shocks emerge.
After rising in July 2025, month-on-month inflation eased to 0.4% in August 2025, a development CZI attributed to the effectiveness of the current tight monetary policy stance in stabilising prices, albeit under constrained liquidity conditions.
“In the long term, monetary policy will need to gradually ease liquidity conditions as stability becomes more sustainable,” CZI said.
“Keeping inflation below 1% enhances price stability and broadens the use of the ZiG beyond a transaction currency. Businesses that previously preferred USD-only transactions are now slowly encouraging ZiG payments to meet some of their monthly obligations.”
