Business Reporter
Zimbabwe’s ZWG currency continues to show signs of strengthening, with both monthly and annual inflation rates maintaining a downward trajectory last month. This reflects the positive effects of the central bank’s ongoing restrictive monetary policies aimed at stabilizing the economy.
Since the implementation of these policies last year, the Reserve Bank of Zimbabwe has focused on controlling inflation, stabilizing the currency, and reducing exchange rate volatility. Key to this strategy has been the high bank policy rate, currently set at 35%, which has been instrumental in curbing speculative borrowing. Such measures have been crucial in reducing excess liquidity and curbing the activities of the parallel market.
As a result, the exchange rate premium has remained stable for over a year, while annual inflation has dramatically decreased by more than 50%, falling from 65.4% to 32.7%. This marks a significant improvement in the country’s inflationary environment.
According to the latest data from the Zimbabwe National Statistics Agency (Zimstats), the all-items ZWG Consumer Price Index (CPI) showed a modest month-on-month price increase of just 0.2% between October and November 2025. This gradual rise in prices reflects a stabilization in the overall inflation trend.
More notably, the ZWG year-on-year inflation rate for November 2025 plummeted to 19.0%, a sharp decline of 13.7 percentage points from the 32.7% recorded in October. This dramatic decrease highlights the success of the central bank’s tightening measures and the growing strength of the ZWG in the face of persistent economic challenges.
“The ZWG month-on-month non-food inflation rate was 0.0% in November 2025, a sharp recovery from the -0.9% rate in October,” said Zimstats, underscoring the stability in non-food prices.
Meanwhile, inflation in food and non-alcoholic beverages remained steady, with a slight increase of 0.7% in November, mirroring the October rate.
In contrast, the USD inflation rate showed a more modest shift, with a 0.2% month-on-month increase in November, a slight dip from the 0.3% recorded in October. Year-on-year, the USD inflation rate remained relatively stable at 13.1%, edging up slightly from 13.0% in October.
The significant improvement in ZWG inflation rates signals the ongoing success of Zimbabwe’s monetary policies in strengthening the local currency and restoring confidence in the economy. The Reserve Bank of Zimbabwe’s strategic focus on price stability and prudent fiscal management appears to be gaining traction, with the effects now visible in both inflation and exchange rate stability.
