RBZ Explains 92.1% ZiG Inflation as Temporary ‘Base Effect’
The Reserve Bank of Zimbabwe (RBZ) has brushed off concerns over the latest inflation figures, which show the Zimbabwe Gold (ZiG) currency’s annual inflation rate has surged to 92.1%.
RBZ Responds to 92.1% ZiG Inflation, Citing Currency Reset
Speaking at a press briefing on Tuesday, 3 June 2025, RBZ Governor Dr John Mushayavanhu said the figure isn’t as worrying as it looks. He explained that the spike is a result of what he called “lived inflation,” which happens when inflation data gets distorted due to unusual comparisons from the past.
He pointed out that because the ZiG was only introduced in April 2024, there was no proper base for calculating annual inflation until now. He added that a one-off price surge in September 2024 is also making the numbers look worse than they actually are.
“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. The high inflation figures are a result of what you call the base effect of a new currency and also the once shock September 2024 effect which saw a spike in prices,” he said.
Inflation Expected to Stabilise by September
He urged the public not to panic, saying a more accurate picture of inflation will emerge from September 2025 onwards, once the distortions even out.
“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,” Mushayavanhu said.
ZiG Backed by Strong Reserves
Dr Mushayavanhu also tried to reassure the public that the ZiG is backed by solid fundamentals, especially the country’s growing gold reserves.
“I want to assure the nation that the ZiG is here to stay. Our reserves have grown at an unprecedented rate from US$257 million to just under US$700 million within a year of the ZiG’s introduction,” he said.
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