Story by Owen Mandovha
ZIMBABWE is experiencing its longest period of price stability in recent years, with annual inflation falling sharply to 4.4 percent in May from nearly 95 percent in July 2025, as Government and monetary authorities intensify efforts to maintain macro-economic stability.
The stable pricing environment, underpinned by exchange rate stability, has reduced the need for businesses to frequently adjust prices and has strengthened confidence across key sectors of the economy.
Under the stewardship of Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu, inflation has declined from three-digit levels recorded last year to a single-digit figure, marking a significant milestone in the country’s inflation management efforts.
Economic analysts say the economy has also demonstrated resilience by absorbing external shocks, including recent fuel price increases, without triggering widespread price increases.
“The RBZ has struck the right chord in managing inflation, which was a thorn in the flesh for authorities. From three-digit inflation in 2025 to just 4.4 percent in May is a huge milestone,” said economic analyst Mr Malone Gwadu.
Economist Mr Persistence Gwanyanya said fears that fuel price increases would trigger an inflation spiral had not materialised.
“The fears that the fuel price increase would spark an inflation spiral were allayed, which demonstrates how the economy has become resilient against external shocks. Indeed, the RBZ is walking the talk in terms of inflation management,” he said.
The improved macro-economic environment is also allowing businesses to focus on expansion and productivity rather than survival strategies.
Food entrepreneur Mr Ranga Ziki said price stability had created favourable conditions for business growth.
“This is a huge incentive to expand, as we are now focused on strategic decisions to grow and improve efficiency instead of remaining in survival mode. The stable macro-economic environment is good for economic growth,” he said.
Several listed companies have reported improved volumes and profitability, while a number of firms have commissioned new production lines in response to the stable operating environment.
The developments support key pillars of the National Development Strategy 2 (NDS2), particularly macro-economic stability and structural transformation, as Zimbabwe advances towards its Vision 2030 goal of attaining upper-middle-income status.
