Zim producer prices show encouraging signs of easing

ZIMBABWE’S producer price environment showed strong signs of moderating inflationary pressures in June 2025, according to latest data released by the Zimbabwe National Statistics Agency (ZimStat).

While annual increases remain historically high, the month-on-month figures across all three producer price indices (PPI)’s, all items ZiG PPI, USD PPI and weighted PPI, point to a gradual easing of price pressures in key sectors of the economy.

ZimStat reported, “The month-on-month rate of change in June 2025 was 0,2 percent, shedding 2,2 percentage points on the May 2025 rate of 2,4 percent.”

This indicates that, on average, domestic producer prices increased by just 0,2 percent from May to June.

Key contributors to this uptick included the manufacture of batteries and accumulators, mining of non-ferrous metal ores, manufacture of basic iron and steel, manufacture of fabricated metal products and mining of hard coal.

Meanwhile, several categories remained flat, including tobacco products, jewellery and bijouterie, furniture, meat processing, basic precious and non-ferrous metals, and structural metal products.

Analyst and economist Gladys Shumbambiri-Mutsopotsi welcomed the slowdown.

“After months of double-digit monthly inflation, a 0,2 percent rise represents a tangible break in the upward trajectory,” she said.

Ms Shumbambiri-Mutsopotsi noted that this moderation reflects both improved supply chain stability and the impact of macro prudential measures taken by the Reserve Bank of Zimbabwe and the Treasury.

Despite the softer monthly pace, year on year inflation remains elevated.ZimStat’s report stated that, “The year-on-year rate of change in June 2025 was 107,0 percent, meaning that producer prices measured by the all items ZiG PPI rose, on average, more than 107 percent between June 2024 and June 2025.”

Ms Shumbambiri-Mutsopotsi cautioned that while the monthly deceleration is encouraging, the legacy of past currency volatility and supply disruptions continues to exert upward pressure on annual averages.

She added that, “Addressing structural bottlenecks in energy and transport will be critical to bringing these rates down sustainably.”