RBZ Projects Return To Inflation Stability By Year-End

By ETimes

HARARE – ZIMBABWE’S economy is poised for greater stability, with the central bank projecting a sharp drop in annual inflation from the fourth quarter of this year.

This follows a sharp rise in prices driven by foreign exchange market dynamics.

The Reserve Bank of Zimbabwe (RBZ) has been tracking ZiG inflation, which increased from 85.7% in April to 92.1% in May 2025 due to a one-time shock in September 2024. However, monthly inflation has remained low and stable, below 1% for the past three months.

“The economy is projected to return to a more stable annual inflation path from the month of October 2025,” RBZ governor John Mushayavanhu said in a statement on inflation developments.

“Going forward, the ZiG annual inflation is expected to significantly decline to below 30% by 31 December 2025 and to further decline towards single-digit levels in the outlook period.”

If sustained, analysts say this trend could lay the groundwork for more predictable economic planning and investment, crucial for reviving growth and improving livelihoods in the long term.