Published: 5 hours ago

Zimbabwe's annual inflation rate could fall by half by the end of 2025, helped by a steadier local currency and strong gold prices, according to a new report from the Confederation of Zimbabwe Industries (CZI).

The CZI said annual inflation, measured in the Zimbabwe Gold (ZiG) currency, dropped sharply to 32.7% in October from 82.7% in September. The group now expects inflation to ease further, possibly reaching 15% to 20% by December 2025.

The decline follows two consecutive months of negative month-on-month inflation and a relatively stable ZiG, which rising global bullion prices have supported, according to Reuters.

Currency stability returns
"The policy target is for an annual ZiG inflation of about 30%. The negative month-on-month inflation for the past two months has helped increase chances of this happening," the CZI said in its October 2025 Inflation and Currency Developments Update.

As Zimbabwe's main business lobby for manufacturers and industrial firms, the CZI's reports are closely watched by investors as early indicators of inflation and currency trends.

The ZiG, partly backed by gold, has remained stable in official markets, with a parallel-market premium of about 20%, according to analysts at Oxford Economics.

Gold production is also expected to surpass the record 38.4 tonnes achieved in 2024, driven by sustained high prices.

After more than two decades of currency turmoil and runaway inflation, Zimbabwe's recent progress marks a tentative return to stability. A continued slowdown in prices, analysts say, would be a crucial step toward rebuilding confidence in local money and supporting a broader economic recovery.
- Business Insider Africa

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