Zimbabwe’s monthly inflation slowed to 3.7 per cent in December 2024, down from 11.7 per cent recorded the previous month, according to data released by the Zimbabwe National Statistics Agency (ZIMSTAT) on Friday.
According to ZIMSTAT, inflation showed a downward trend in November and December, from a peak of 37.2 per cent in October.
This change is attributed to the stability of prices and the local currency, the Zimbabwe Gold (ZiG), following a 43 per cent devaluation by the central bank in September.
In USD, annual inflation was 2.5 per cent in December, down from 3.3 per cent in November.
Presenting the 2025 national budget to Parliament in November, Finance Minister Mthuli Ncube said he expects ZiG month-on-month inflation to remain stable and average below 3 per cent next year, supported by tight fiscal and monetary policies.
He added that the 2025 fiscal plan is based on single-digit inflation and a stable exchange rate to foster a favourable business environment. Said Ncube:
<blockquote>
Any deviation from these assumptions, including the widening of the premium between the official and parallel markets, will severely impact macroeconomic stability.
</blockquote>
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In Zimbabwe, prices are not going up as fast as before. In December, the prices only went up 3.7%, which is less than the 11.7% increase in November. The prices have been more stable since the currency was devalued in September. The Finance Minister said that he expects the inflation to stay low in 2025, which will help businesses. If the inflation rises too much, it can cause problems for the economy. The aim is to keep inflation in single digits and have a stable exchange rate.

Zimbabwe's Monthly Inflation Slows To 3.7% In December, Down From 11.7%

Zimbabwe’s month-on-month inflation rose to 15.7% in May after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April.
This was said by Zimbabwe National Statistics (ZIMSTAT) director-general Taguma Mahonde in Harare on Friday. He said:
<blockquote>
The month-on-month inflation rate in May 2023 was 15.7% gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The month-on-month inflation rate is given by the percentage change in the index of the relevant month compared with the index of the previous month.
The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the year compared with the index of the same month in the previous year.
</blockquote>
In March this year, Minister of Finance and Economic Development Mthuli Ncube announced that inflation will be measured using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Former Finance Minister Tendai Biti has said the move by the government to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation.
Biti said the government always comes up with “ridiculous” policies in a bid to cover its “embarrassing failures”.
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