Zimbabwe: Reserve Bank Urges Public to Focus On Monthly Inflation Amid ZIG Price Spike

The Reserve Bank of Zimbabwe (RBZ) has urged the public not to panic. Rising year-on-year inflation is temporary, mainly due to a past price shock.

RBZ Governor Dr. John Mushayavanhu reported that annual inflation for the Zimbabwe Gold (ZiG) currency increased from 85.7% in April to 92.1% in May 2025. This rise is largely attributed to a sharp price spike in October 2024.

Dr. Mushayavanhu explained that monthly inflation has remained steady at less than 1% for three months. This indicates that current prices are stable.

ZIMSTAT, the national statistics agency, began reporting year-on-year ZiG inflation in April 2025. This followed a full year of data collection after transitioning from the Zimbabwe dollar (ZW$) to ZiG currency in 2024.

"The recorded rise in year-on-year ZiG inflation is primarily due to the base effect," said Mushayavanhu. He expects this trend to continue until September 2025 before declining.

He assured the public that this spike does not indicate new price increases or a loss of purchasing power. Annual inflation is projected to drop below 30% by December 2025 and approach single digits next year.

"The Reserve Bank remains committed to maintaining low and stable monthly inflation," he added. Consumers and businesses should focus on month-to-month price changes for a better understanding of living costs.