February Inflation Slows After January Surge

Oscar J. Jeke
Zim Now Reporter

Zimbabwe's inflation showed signs of easing in February after a sharp spike in January. According to the Zimbabwe National Statistics Agency, the country’s monthly inflation rate fell to 0.5% in February, down from 10.5% the previous month.

The slowdown comes after a surge in January, when inflation jumped 6.8 percentage points from December, driven by rising costs in rentals, utilities, and food prices. However, while February saw a drop in month-on-month inflation, annual inflation in U.S. dollars continued to rise, reaching 15.1% in February, up from 14.6% in January.

Food and non-alcoholic beverages remained the biggest contributors to inflationary pressures. Rising global food prices and local supply chain disruptions have kept essential goods expensive, straining household budgets.

In response, the Reserve Bank of Zimbabwe (RBZ) has maintained its policy rate at 35%, aiming to curb inflation. While the central bank remains optimistic about bringing inflation down to single digits by year-end, analysts caution that sustained price stability will depend on exchange rate movements, external economic conditions, and government policy consistency.

Despite February’s moderation, the cost of living remains a major concern, particularly as food prices stay high. Many Zimbabweans are hoping for further relief as authorities work to stabilize the economy.