Zimbabwe’s ZWG annual inflation rate registered another decline, falling to 2.9% in August 2026 from 3.2% recorded in July, the Zimbabwe National Statistics Agency (ZimStat) reported on Tuesday.
The statistics agency also revealed that ZWG month-on-month inflation remained stable at 0.1% in August, unchanged from the previous month.
In US dollar terms, the monthly inflation rate fell to 0.0% in August from 0.3% in July, while the annual US dollar inflation rate remained unchanged at 3.1%, ZimStat reported.
The agency attributed the continued low inflation rates in both ZiG and US dollar terms to ongoing exchange rate stability during the month.
The Reserve Bank of Zimbabwe (RBZ), the country’s central bank, said last week that it expects annual ZiG inflation to average around 5% by the end of 2026, with monthly inflation remaining below 1% on the back of a tight monetary and fiscal policy stance.
Zimbabwe recorded a single-digit annual ZiG inflation rate of 4.1% in January for the first time in more than three decades, with monetary authorities reiterating their commitment to maintaining price stability to anchor long-term macroeconomic growth.
Meanwhile, the Food Poverty Line for one person stood at ZWG923.07 in August 2026, while the Total Consumption Poverty Line (TCPL) for one person was ZWG1,344.
Presenting the 2026 Mid-Term Monetary Policy Statement last week, RBZ Governor John Mushayavanhu said sustained economic stability was steadily advancing the country’s transition towards a mono-currency regime.
“Zimbabwe has reached a 50,1 percent weighted progress score on the conditions required to transition from the multicurrency to a mono-currency regime,” he said.
However, Mushayavanhu cautioned that the 50.1% score should not be interpreted as an imminent switch to a single currency.
Zimbabwe remains under a multicurrency arrangement in which foreign currencies co-circulate with the domestic unit, ZiG.
The eventual transition to a domestic mono-currency is expected only after the requisite conditions have been fully achieved and sustainably maintained.
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