Zimbabwe has recorded single-digit inflation for the first time in nearly three decades, a milestone that marks a crucial step toward stabilizing the gold-backed ZiG currency and achieving the country’s Vision 2030 economic goals.
Official figures show the annual inflation rate slowed sharply to 4.1 percent in January, down from 15 percent in December 2025. Finance Minister Mthuli Ncube described the development as “a historic moment,” noting it is the first time since 1997 that Zimbabwe has maintained such low inflation.
The ZiG, short for Zimbabwe Gold, was launched in April 2024 following repeated currency failures and hyperinflation. The central bank has set clear benchmarks for the ZiG to operate as the country’s sole currency, including maintaining single-digit inflation and building sufficient foreign reserves to cover three to six months of imports. By December, foreign assets backing the ZiG had grown to $1.2 billion from $276 million at launch.
Ncube highlighted that the milestone signals the end of a 20-year struggle with price instability and reinforces confidence in the economy. “This is a result of consistent efforts by the Ministry of Finance and the Reserve Bank through coordinated fiscal and monetary policies,” he said.
Government data also show that household costs are beginning to stabilize, with staple prices such as bread, mealie meal, sugar, and cooking oil showing little change or slight declines compared to December 2025. Officials say stable prices help protect incomes, savings, and business planning while reducing speculation that distorts the economy.
The government has called on businesses and labour unions to support ongoing stability, urging responsible pricing and aligning wage adjustments with inflation trends. The achievement aligns Zimbabwe with Southern African Development Community benchmarks, which target inflation between 3 and 7 percent, with a continued focus on defending single-digit inflation.
