Zimbabwe Sees Significant Inflation Slowdown as Currency Reforms Take Hold
Zimbabwe Sees Significant Inflation Slowdown as Currency Reforms Take Hold
The deceleration in price growth in August reinforces the statements of the Zimbabwean government that the recent currency reforms are beginning to stabilize the economy, state media reported.
The local ZiG currency's month-on-month inflation rate dramatically eased to 0.4% in August, down from 1.6% in July, according to the Zimbabwe National Statistics Agency.
Food prices in ZiG even slipped into negative territory. Similarly, the US dollar-based Consumer Price Index, which covers a substantial portion of urban spending, recorded 0.0% inflation month-on-month, offering relief to those earning in dollars.
Officials and economists attribute this slowdown to tighter monetary discipline, structural reforms by the Reserve Bank of Zimbabwe to bolster the ZiG, and improved local supply chains, especially in agriculture.
While the ZiG's annual inflation remains high at 93.8% (a figure officials attribute partly to statistical overhang from past instability), the overall weighted annual inflation, which combines ZiG and USD, stood at a more manageable 27.6%.
Analysts suggest that if the current positive trend continues, Zimbabwe could achieve its most stable inflation profile in over a decade by 2026.
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