Zimbabwe’s ZiG Inflation Hits 92.1% As USD Rates Drop

Zimbabwe Inflation Breakdown: ZiG Soars, USD Slips

Zimbabwe’s local currency, ZiG inflation has surged to 92.1%, according to the latest data released by the Zimbabwe National Statistics Agency (Zimstat). The rise marks a sharp increase from April’s rate of 85.7%, as prices of food and basic goods continue to climb.

Meanwhile, inflation for goods priced in US dollars has gone down, offering a stark contrast in the dual-currency economy.

First full-year inflation figures since ZiG launch

This month’s update is only the second time that Zimstat has published annual inflation figures for the ZiG currency.

The ZiG (Zimbabwe Gold) was introduced in April 2024, replacing the Zimbabwe dollar. However, Zimstat could only start publishing year-on-year inflation figures after one full year of data had been collected.

“For the first time, Zimstat has today reported annual ZiG inflation,” wrote @newswireZW on 25 April 2025.

“It is now a full year since the ZiG was launched, which means current prices can now be compared to April 2024 to give the annual rate.”

In that report, the first official annual ZiG inflation rate was set at 85.7%. Just one month later, it has climbed further to 92.1% in May 2025.

Food, housing and fuel driving prices up

The latest inflation spike was driven largely by rising food prices, alongside utilities such as housing, fuel, water and power.

In a post on X, economic publication newZWire said:

“ ZiG annual inflation for May was 92.1%, up from 85.7% in April.
ZiG monthly inflation for April 2025 was 0.9%, up from 0.6% in April.

Food and non-alcoholic drinks drove inflation in May.”

The Reserve Bank of Zimbabwe (RBZ) had anticipated the increase, citing the currency devaluation in September 2024 as a key reason.

“RBZ last month said it expected April inflation to ‘come in at a relatively elevated level’,” said newZWire.

“It expects inflation to end 2025 at below 30%.”

USD prices ease as ZiG struggles

While prices in ZiG continue to rise, USD inflation has shown signs of cooling.

Zimstat data shows that USD annual inflation fell to 13.9% in May, down from 14.4% in April. Month-on-month inflation in USD actually went into negative territory, falling by 0.3%.