Staff Reporter
Zimbabwe’s inflation trajectory has shown signs of stabilising, with a mean monthly inflation rate of 2.5 percent for the period January to May 2025.
According to the Zimbabwe National Statistics Agency (ZIMSTAT) report, while prices remain high, the average reflects a notable cooling in month-to-month volatility compared to past years of economic turmoil.
“This is the most encouraging signal we’ve seen in a while. An average of 2.5 percent monthly inflation may not be ideal, but it marks a clear shift away from the hyperinflationary trends that destabilised Zimbabwe’s economy in previous years,” said Economist Tendai Mhashu.
The latest Consumer Price Index (CPI) bulletin shows that consumer prices rose from US$185.68 in April to US$187.42 in May, representing a 0.9 percent month-on-month inflation rate, up slightly from 0.6 percent in April. The data was collected between May 12 and 16, 2025.
Much of the increase was driven by food-related expenses. The Food and Non-Alcoholic Beverages category saw a sharp 1.6 percent rise in May, a bounce-back from the -0.2 percent recorded in April. In contrast, the non-food inflation rate eased to 0.6 percent from 1.1 percent the previous month.
Despite the monthly fluctuations, analysts are focusing on the bigger picture.
“What’s more important than a single month’s increase is the trend over time,” said financial analyst, Ruvimbo Nyathi.
“The 2.5 percent average monthly rate suggests that inflationary pressures are gradually becoming more manageable this offers a foundation for long-term planning and business confidence,” said Nyathi.
However, year-on-year inflation remains steep. The ZWG CPI showed a 92.1 percent increase in consumer prices from May 2024 to May 2025, nearly doubling costs for Zimbabwean households over the past year. While concerning, some economists argue the current focus should be on controlling monthly inflation to prevent a recurrence of runaway pricing.
“There’s still a long road ahead. But if authorities can sustain this downward pressure on monthly inflation, the economic environment will slowly begin to normalise,” Mudzonga added.
Meanwhile, the ZIMSTAT is expected to publish its June figures at the end of next month.
