Zimbabwe’s annual inflation rate for the ZiG currency fell sharply to 2.9% in August 2026, down from 3.2% in July, marking a significant milestone in the country’s drive for price stability.
In a statement, yesterday, RBZ Governor, Dr John Mushayavanhu, emphasized the Central Bank’s resolve.
“The continued decline in annual inflation to 2.9% in August 2026 demonstrates that the monetary policy measures we have implemented are yielding the desired results.
The modest monthly increase of 0.1% confirms that underlying inflationary pressures are now well contained, reflecting improved foreign exchange market stability, disciplined money supply growth, and enhanced supply of goods and services in the economy,” he added.
Dr Mushayavanhu added that the Central Bank projected the ZiG inflation will remain low and stable, averaging approximately 5% for the full year 2026.
“Looking ahead, we anticipate that inflation will continue on a downward trajectory, supported by our tight monetary policy stance, improved fiscal coordination, and positive developments in our key export sectors.
We are confident that by the end of 2026, inflation will be comfortably anchored within the SADC benchmark range, which is critical for boosting investor confidence, protecting incomes, and creating a predictable environment for businesses and households alike,” he noted.
Economist, Persistent Gwanyanya, commented on the figures saying they reflect one of the lowest inflation readings ever recorded.
“The figures represent one of the lowest inflation readings in more than a decade, signaling a turning point for Zimbabwe’s economic stabilization efforts,” he said.
Furthermore, the steady decline reflects successful monetary reforms, currency stabilization under the new ZiG, and improved fiscal discipline laying a foundation for sustainable growth, investor confidence, and household purchasing power.
