ZiG Inflation To Stay High Until September, Says RBZ
The Reserve Bank of Zimbabwe has warned that annual inflation for the Zimbabwe Gold (ZiG) currency will likely remain high until September 2025, after reaching a peak of 92.1% in May.
“The high inflation figures are a result of what you call the base effect of a new currency and also the once-off shock September 2024 effect which saw a spike in prices,”
— Dr John Mushayavanhu, RBZ Governor
Inflation spike blamed on currency transition
Speaking at a press briefing on 3 June 2025, Reserve Bank Governor Dr John Mushayavanhu addressed growing public concern about rising prices and inflation. He explained that the 92.1% figure, up from 85.7% in April, was largely due to statistical distortions.
“The ZiG was introduced as a new currency in April 2024 and there was no base to calculate annual inflation figures up until May this year when 12 months lapsed,”
— Mushayavanhu explained.
He added that a sharp rise in prices in October 2024—following a spike from 5.8% to 37.2% in month-on-month inflation—was skewing the year-on-year numbers.
RBZ says the monthly inflation has been under 1% for the past three months, indicating underlying price stability.
ZiG inflation expected to cool after September
Dr Mushayavanhu said the inflation figures would stabilise later this year.
“But overall the nation should expect a low annual inflation figures from around September 2025 which will provide a real picture of our inflation figures which will drastically come down,”
— he said.
He emphasised that the current high annual rate does not reflect the true picture on the ground and should not cause panic among the public.
The RBZ encouraged Zimbabweans to pay more attention to month-on-month inflation, which directly impacts purchasing power. The central bank believes this metric gives a clearer view of the economic environment.
ZiG backed by growing reserves
To further calm fears, the governor pointed to the strong backing behind the ZiG currency. The nation’s reserves have reportedly grown significantly.
“Our reserves have grown at an unprecedented rate from US$257 million (approximately R4.8 billion) to just under US$700 million (approximately R13.2 billion) within a year of the ZiG’s introduction,”
— Mushayavanhu stated.
The Reserve Bank reaffirmed its commitment to maintaining tight monetary policy to ensure continued price and exchange rate stability.
“The prudent monetary policy management being pursued by the Reserve Bank will engender price, currency and exchange rate stability,”
— concluded the governor in a written statement dated 4 June 2025.
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The post RBZ Governor Says ZiG Inflation To Remain High Until September After Soaring To 92.1% appeared first on iHarare News.
