HARARE, Nov 3 (Reuters) – Zimbabwe’s annual inflation rate could halve from current levels by the end of 2025, driven by a stable local currency supported by high gold prices, according to a report by the Confederation of Zimbabwe Industries released on Monday.<\/p>\n
Annual inflation in Zimbabwe measured in the Zimbabwe Gold (ZiG) currency fell sharply to 32.7% in October from 82.7% in September, the CZI said. The organization expects inflation to decline further, potentially reaching between 15% and 20% by December 2025.<\/p>\n
Sign up here.<\/a><\/p>\n This projection is attributed to negative month-on-month inflation in recent months and a stable ZiG currency, bolstered by surging gold prices.<\/p>\n “The policy target is for an annual ZiG inflation of about 30%. The negative month-on-month inflation for the past two months has helped increase chances of this happening,” the CZI said in its October 2025 Inflation and Currency Developments Update.<\/p>\n The CZI, Zimbabwe’s main business lobby representing manufacturing and industrial firms, publishes independent macroeconomic data that investors use as an early indicator of domestic price and currency trends.<\/p>\n The ZiG currency, partly backed by gold, has maintained stability in official markets, with a parallel market premium of approximately 20%, analysts at Oxford Economics said.<\/p>\n Gold production in Zimbabwe is forecast to surpass the record 38.4 tonnes achieved in 2024, driven by high bullion prices, according to the same analysts.<\/p>\n Zimbabwe has grappled with persistent inflation and currency instability for over two decades, with frequent dollarization episodes undermining confidence in local money.<\/p>\n A sustained reduction in inflation would be a critical step toward restoring policy credibility and facilitating economic recovery in the Southern African nation.<\/p>\n Reporting by Chris Takudzwa Muronzi; Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n
\nEditing by Colleen Goko and Jan Harvey<\/p>\n