Zimbabwe Gold annual inflation rate dropped further, shedding 0,3 percentage points on the January rate to 3,8 percent in February, the lowest ever local currency inflation in nearly 30 years, as price changes remain anchored amid tight liquidity and high interest rates.
The ZiG annual inflation rate peaked at 95,8 percent in July last year
This comes as the exchange rate has remained largely steady, with the parallel market premium narrowing below 20 percent, keeping a lid on price movements that also track changes in the exchange rate.
Zimbabwe has achieved a significant reduction in inflation, with annual rates falling to single digits (approximately 4,1 percent in January 2026) for the first time in nearly three decades.
This dramatic turnaround from previous hyperinflationary cycles is driven by a combination of tight monetary policy, fiscal discipline and growing confidence in the gold-backed currency, the Zimbabwe Gold (ZiG)
“The ZiG year-on-year inflation rate (annual percentage change) for the month of February 2026 as measured by the all-items ZiG Consumer Price Index (CPI), was 3,8 percent, shedding 0,3 percentage points on the January 2026 rate of 4,1 percent,” the Zimbabwe National Statistics Agency (ZimStat) said.
This means prices increased by an average rate of 3,8 percent from February 2025 to February 2026.
Month-on-month price gains were subdued across the ZiG, US dollar and weighted indices.
“The ZiG month-on-month inflation rate was 0,1 percent in February 2026, gaining 0,1 percentage points on the January 2026 rate of 0,0 percent.”
This means that prices, as measured by the all-items ZiG Consumer Price Index, increased by an average rate of 0,1 percent from January 2026 to February 2026.
The marginal uptick reflects continued price stability in the local currency, despite slight movements in selected non-food categories.
Food inflation in ZiG terms softened during the month under review. ZimStat noted, “The ZiG month-on-month Food and Non-Alcoholic Beverages inflation rate was -0,1 percent in February 2026, shedding 0,2 percentage points on the January 2026 rate of 0,1 percent.”
However, non-food pressures ticked up modestly.
The February 2026 ZiG month-on-month non-food inflation rate was 0,3 percent, gaining 0,4 percentage points on the January 2026 rate of -0,1 percent. The mean ZiG month-on-month inflation rate for January to February 2026 stood at 0,1 percent, a sharp slowdown compared to the 1,2 percent average recorded between January and December 2025, underscoring the broader disinflation trend.
In US dollar terms, price movements were similarly restrained. ZimStat said, “The USD month-on-month inflation rate for February 2026 was 0,1 percent, shedding 0,1 percentage points on the previous month’s rate of 0,2 percent.”
This means prices increased by an average rate of 0,1 percent from January 2026 to February 2026.
Food inflation in US dollar terms was flat. “The USD month-on-month Food and Non Alcoholic Beverages inflation rate was 0,0 percent in February 2026, shedding 0,3 percentage points on the January 2026 rate of 0,3 percent,” ZimStat said.
Non-food inflation remained steady at 0,2 percent.
On a year-on-year basis, US dollar inflation continued to decelerate.
ZimStat reported, “The USD year-on-year inflation rate (annual percentage change) for the month of February 2026 as measured by the all-items USD Consumer Price Index (CPI), was 0,9 percent, shedding 0,1 percentage points on the January 2026 rate of 1,0 percent.”
The mean US dollar month-on-month inflation rate for January to February 2026 was 0,2 percent, compared to a 1,0 percent average during the 2025 calendar year.
The weighted inflation measure, which blends ZiG and US dollar price movements, also pointed to subdued pressures.
According to ZimStat, “The Weighted month-on-month inflation rate was 0,1 percent in February 2026, shedding 0,1 percentage points on the January 2026 rate of 0,2 percent.”
Food prices within the weighted basket declined slightly, with ZimStat noting, “The weighted month-on-month food and non-alcoholic beverages inflation rate was -0,1 percent in February 2026, shedding 0,3 percentage points on the January 2026 rate of 0,2 percent.”
Non-food inflation held steady at 0,2 percent.
On an annual basis, the weighted index eased further.
ZimStat said: “The weighted year-on-year inflation rate (annual percentage change) for the month of February 2026 as measured by the all-items Weighted Consumer Price Index (CPI), was 1.6 percent, shedding 0.2 percentage points on the January 2026 rate of 1.8 percent.”
This indicates that prices increased by an average of 1,6 percent between February 2025 and February 2026.
ZimStat clarified that data on prices was collected during the period 11th to 17th February 2026. Hence, the changes in prices in this report refer to that period of data collection.
The mean weighted month-on-month inflation rate for February 2026 stood at 0,1 percent, compared to a 1,1 percent average for the January to December 2025 period.
Overall, the February figures reinforce the narrative of sustained price stability across both local and foreign currency transactions.
With annual inflation rates trending lower and monthly movements contained within narrow margins, policymakers will likely view the data as further confirmation that current monetary and fiscal settings are anchoring inflation expectations. – Herald