Inflation Eases Slightly in August, But Remains High

Oscar J Jeke- Zim Now Reporter

Zimbabwe’s inflation rate slowed marginally in August, with annual price growth in the ZiG currency easing to 93.8%, down from 95.8% in July.

 This remains above June’s 92.5%, highlighting persistent cost pressures despite tighter monetary policy.

On a monthly basis, ZiG inflation cooled to 0.4%, a sharp slowdown from July’s 1.6%. 

The Reserve Bank of Zimbabwe attributed the moderation to slower growth in food and household items, though key costs such as transport, school fees, communication, and clothing continued to put upward pressure on prices.

“ZiG annual inflation for August was 93.8%, slightly slower than 95.8% in July, but higher than June’s 92.5%. In USD terms, prices remained unchanged on average in August. 

Annual inflation was 14.2%, compared to 14.4% in July, while month-on-month inflation was 0%, down from 0.3% in July,” the central bank said.

In US dollar terms, inflation was largely stable. Annual USD inflation eased to 14.2% in August, from 14.4% in July, while month-on-month inflation registered 0%, down from 0.3% previously. Prices in hard currency remain driven by rentals, utilities, and fuel.

The RBZ maintains that ZiG inflation will remain elevated through September, before slowing towards 30% by year-end, as the central bank expects currency stability and tight liquidity management to tame demand-driven pressures.