Zimbabwe Hits Single-Digit Inflation Milestone

By Kudzaishe Chimonera

Zimbabwe has recorded single-digit inflation in its domestic currency for the first time in almost 30 years according to official figures released by the government.

Data shows year-on-year inflation in the Zimbabwe Gold (ZiG) currency fell to 4.1% in January 2026 while inflation measured in United States dollars declined to 1%—a development authorities say signals a turning point in the country’s long-troubled economic story.

In a statement, Finance Minister Prof. Mthuli Ncube described the figures as “a critical milestone towards durable macroeconomic stability, critical for sustainable economic growth and the achievement of Vision 2030, towards a prosperous and empowered upper middle-income society.”

The minister attributed the decline in inflation to what he called concerted and consistent efforts by the Ministry of Finance, Economic Development and Investment Promotion and the Reserve Bank of Zimbabwe, working in tandem on fiscal and monetary reforms.

“The implementation of prudent fiscal policy over the past few years, and complementary monetary policy since the introduction of ZiG in April 2024, has resulted in macroeconomic stability,” he said

Prof. Ncube said the ZiG currency is backed by both gold and foreign currency reserves, with reserve money and broad money said to be fully covered.

“In this regard, Government has managed to accumulate foreign assets reserves backing the ZiG from about US$276 million in April 2024 to US$1.2 billion by the end of December 2025,” he said.

He added that prices of basic consumer goods have remained largely unchanged over the past year.

“The price of most consumer goods such as bread, mealie meal, detergents, beef, tea, milk, lotions and other essentials has barely changed during the past twelve months,” Prof. Ncube said.

The finance minister said price stability was essential for restoring confidence in the economy and improving the investment climate.

“Price stability eliminates opportunities for arbitrage and speculation which distort the macro-economic environment, and promotes national savings, investment and foreign direct investment,” he said.

Looking ahead, Prof. Ncube said the government would continue to prioritise stabilisation and urged cooperation across the economy.

“To further guarantee stability going forward, there is need for all stakeholders, particularly business and labour, to work closely with Government to entrench stability,” he said.

While economists and consumers are likely to scrutinise whether the gains can be sustained, the latest figures mark a symbolic moment for a country long associated with runaway inflation and currency instability.