The Reserve Bank of Zimbabwe (RBZ) has called on the public not to panic over rising year-on-year inflation saying the increase is temporary and mainly caused by a past price shock.
In a statement, RBZ Governor Dr. John Mushayavanhu said the annual inflation for the Zimbabwe Gold (ZiG) currency rose from 85.7% in April to 92.1% in May 2025.
However, Dr. Mushayavanhu said this is largely due to a sharp spike in prices recorded back in October 2024.
“The Reserve Bank has been closely monitoring and anticipating the recent movements in year-on-year ZiG inflation, which rose from 85.7% in April to 92.1% in May 2025, primarily owing to a once-off shock experienced in September 2024,” said Mushayavanhu
He explained that despite the high annual figures, monthly inflation has been steady at less than 1% for the past three months showing that current prices are stable.
ZIMSTAT, the national statistics agency, only began reporting year-on-year ZiG inflation in April 2025, after a full year of data had been collected. This followed the country’s transition from the Zimbabwe dollar (ZW$) to the ZiG currency in 2024, which left a gap in inflation records.
“The Reserve Bank, therefore, advises the public that the recorded rise in year-on-year ZiG inflation in April and May 2025 is primarily due to the base effect… The current trend in annual inflation is expected to continue up to September 2025 and decline thereafter,” Mushayavanhu said.
He assured the public that this spike does not reflect new price increases or a loss of purchasing power. In fact, annual inflation is expected to drop below 30% by the end of December 2025 and move towards single digits next year.
“The Reserve Bank remains committed to sustaining the current low and stable monthly inflation… to reverse the transitory trend increases in ZiG annual inflation,” he added.
Consumers and businesses are being urged to focus on month-to-month price changes which he said more accurately reflect the current cost of living.
