Story by Stanley James, Business Editor
ZIMBABWE’s domestic currency annual inflation rate has declined to single digit levels for the first time since 1997, signalling what authorities describe as growing macroeconomic stability under the Second Republic.
According to figures released by the Zimbabwe National Statistics Agency (ZIMSTAT) this Monday, year-on-year inflation in domestic currency dropped sharply from over 85 percent in April 2024 to 4.1 percent by January 2026.
ZIMSTAT attributes the decline to tighter fiscal and monetary policies, improved price stability, increased production and a narrowing gap between official and parallel market exchange rates.
Consumers have welcomed the prevailing stability, saying it has restored confidence and predictability in the market.
“It is good because these days you can plan properly and make informed decisions,” said one consumer.
Another noted that stable prices had reduced panic buying.
“We are happy because prices are stable. There is no longer panic buying, and I can save money and buy when I need to,” the consumer said.
Others said the trend has improved confidence in the domestic currency.
“It has given us confidence as consumers because our local currency now has purchasing power,” said another shopper.
ZIMSTAT Director-General Mrs Tafadzwa Bandama said the latest figures reflect a sustained slowdown in inflation following the introduction of the ZiG currency in April 2024.
“The figures released show that annual ZiG inflation declined from 15 percent in December to 4.1 percent in January 2026. Furthermore, annual inflation in United States dollar terms also fell from 12.4 percent in December 2025 to one percent in January 2026,” she said.
Mrs Bandama explained that while inflation has slowed, this does not mean prices are falling.
“Inflation refers to the general increase in the price level of goods and services. A decline in inflation means prices are rising at a slower pace, not that prices are decreasing,” she added.
Based on the latest data, Zimbabwe is now ranked among Southern African Development Community (SADC) economies recording relatively stable inflation environments.
President Emmerson Mnangagwa has previously reaffirmed government’s commitment to maintaining prudent fiscal and monetary policies to consolidate price and macroeconomic stability.
“The tight monetary and fiscal environment has remained supportive of sustained economic activity. Government continues to implement the necessary policies, measures and initiatives to maintain ZiG currency stability and contain inflation. Going forward, macroeconomic stability is expected to become the norm,” the President said.
The decline in inflation at the start of the year has raised optimism for increased economic activity across industry and commerce, as Zimbabwe targets a five percent economic growth rate in 2026, down from over six percent recorded last year, in line with the National Development Strategy Two’s objective of consolidating macroeconomic stability.
