Inflation Slows Further in October as ZiG Monthly Rate Turns Negative

 

Zimbabwe’s inflation continued to slow in October, with annual inflation falling to 32.7% from 82.7% in September, according to the latest figures from the Reserve Bank of Zimbabwe.

In local currency terms, monthly inflation declined by 0.4%, extending the downward trend from the -0.2% recorded in September. The central bank attributed this mostly to slowing price increases in food and non-alcoholic beverages.

In US dollar terms, annual inflation eased slightly to 13% from 13.4% in September, while monthly inflation rose modestly to 0.3% from 0% in the previous month.

The RBZ said the continued slowdown reflects increasing stability in the ZiG, supported by firm foreign currency inflows and a relatively contained parallel market exchange premium.
 

“Low monthly inflation keeps prices steady, allowing Zimbabweans to manage their budgets, savings and planning with more certainty,” the central bank said.

The decline marks another month of easing inflationary pressure. In September, annual ZiG inflation had dropped to 82.7% from 93.8% in August and 95.8% in July.

The RBZ projects annual ZiG inflation to fall further to around 20% by December, signalling what it describes as a gradual return to more sustainable price conditions. 

The bank added that a steady exchange rate and stable ZiG value are key to giving citizens confidence in transacting and saving.