The annual Zimbabwe Gold (ZiG) inflation rate fell to 2,9% in August, the lowest single-digit inflation outturn since 1980 and “a milestone achievement”, the Reserve Bank of Zimbabwe (RBZ) said Tuesday.
In ZiG terms, inflation fell from 3,2% in July, representing a 0,3 percentage-point decline.
Zimbabwe measures inflation in both ZiG and US dollars.
The US dollar inflation stood at 3,1% in August.
In a statement, central bank governor John Mushayavanhu said the low ZiG inflation was “a clear testament that the prudent policies being pursued by the authorities have been effective in continuously delivering price, currency and exchange rate stability in the economy”.
“Annual ZiG inflation stood at 2,9% in August 2026, the lowest single digit inflation outturn since 1980,” it said.
ZiG inflation increased from 4,1% in January 2026 to 4,8% in April, reflecting the impact of a global oil price shock on domestic prices arising from the conflict in the Middle East.
“The muted impact of the oil price shock on Zimbabwe’s inflation benefited from well anchored inflation expectations, with other sub-Saharan African countries recording, on average, increases of between two to four percentage points in domestic inflation,” the bank said.
The Reserve Bank has focused on stabilising inflation since April 2024 when Mushayavanhu took over.
But his hawkish monetary policy stance has been blamed by some businesses for suffocating industries, while authorities argue that tight monetary and exchange rate policies are necessary to address the damage caused by years of hyperinflation and restore macroeconomic stability.
“This entails that prices of domestic goods and services, since August 2025 have increased at relatively the same pace in both ZiG and US dollar,” the central bank said.
“Importantly, the implication is that businesses should be indifferent in terms of pricing and accepting payment in either foreign currency or ZiG. In this regard, the prevailing low and stable inflation environment should support greater predictability and certainty in business planning and investment critical for the wider use of ZiG in the multi-currency environment,” it said.
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