Zimbabwe’s annual inflation rate is projected to fall by half by the end of 2025, supported by a stable local currency and strong gold prices, according to a report released Monday by 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 organization expects inflation to continue easing, potentially reaching between 15% and 20% by December 2025, according to Reuters.
This forecast reflects recent negative month-on-month inflation and the stability of the ZiG, which has been reinforced by surging gold prices.
“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 noted in its October 2025 Inflation and Currency Developments Update.
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The CZI, Zimbabwe’s leading business association representing manufacturing and industrial firms, publishes independent macroeconomic data often used by investors as an early gauge of price and currency trends.
The ZiG, partly backed by gold, has remained stable on official markets, with a parallel market premium of around 20%, according to analysts at Oxford Economics.
The same analysts said Zimbabwe’s gold output is expected to exceed the record 38.4 tonnes achieved in 2024, supported by elevated global bullion prices.
Zimbabwe has battled chronic inflation and currency volatility for over two decades, with repeated bouts of dollarization eroding public confidence in local money.
A sustained decline in inflation, analysts say, would mark a significant step toward restoring policy credibility and supporting economic recovery in the Southern African nation.
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Image Credit: Times Live
