Zimbabwe News Update
bulawayo24
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News / NationalZiG inflation plunges by 5000 basis points to 32,7%by Staff reporter1 hr ago |77ViewsZimbabwe’s annual inflation rate measured in Zimbabwe Gold (ZiG) fell sharply to 32,7% in October, down from 82,7% in September, despite little movement in the exchange rate and persistently high consumer prices – a development analysts say reflects statistical base effects rather than genuine price stability.According to the Zimbabwe National Statistics Agency (ZimStat), the ZiG year-on-year inflation rate – representing the average change in prices between October 2024 and October 2025 – declined by 50 percentage points, marking the steepest monthly drop since the new currency’s introduction in April.”The ZiG year-on-year inflation rate (annual percentage change) for the month of October 2025 as measured by the all-items ZiG Consumer Price Index (CPI), was 32,7%,” said ZimStat.
“This means that prices increased by an average of 32,7% from October 2024 to October 2025.”However, the dramatic fall in inflation came without corresponding currency or policy adjustments. The ZiG exchange rate moved only marginally – from US$1:ZiG26,6899 at the beginning of October to ZiG26,5087 as of Tuesday.Economists say this suggests the decline may largely be due to base effects – when unusually high prices in the previous year distort current inflation comparisons – or data realignment rather than a tangible slowdown in price increases.The new figure also diverges sharply from projections by international financial institutions. The International Monetary Fund (IMF) and World Bank had forecast Zimbabwe’s annual inflation to end 2025 at around 89%, moderating to 18,2% by end-2026.
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