The Reserve Bank of Zimbabwe (RBZ) has praised the ongoing decline in the monthly inflation rate, viewing it as a positive step toward lasting economic stability in both local and foreign currency pricing.
Data from the Zimbabwe National Statistics Agency (ZimStat) shows that the weighted average monthly inflation rate fell by 0.3 percentage points in May to reach 0%.
In addition, the month-on-month inflation rate for the US Dollar declined to -0.3% in May, a fall of 0.5 percentage points from April’s 0.2%.
In contrast, the Zimbabwe Gold (ZiG) currency saw its monthly inflation rate rise to 0.9%, up 0.3 percentage points from 0.6% in April.
Delivering a keynote address on behalf of RBZ governor Dr. John Mushayavanhu at the Zimbabwe National Chamber of Commerce (ZNCC) 2025 Matabeleland Annual Business Awards in Bulawayo on Friday, deputy governor Dr. Jesimen Chipika underscored that the ongoing decline in inflation is a direct outcome of strong monetary policy interventions, The Herald reports.
Dr. Mushayavanhu highlighted that monthly inflation has remained consistently below 3%, fostering a more stable and predictable economic environment suitable for long-term planning and investment.
Furthermore, the RBZ governor noted that monetary policy efforts have brought about relative stability in both the exchange rate and inflation. He pointed out that the parallel market exchange rate premium has been kept at manageable levels, hovering around 20%.
The central bank has consistently met the foreign currency needs of businesses for legitimate imports by actively intervening in the forex market to maintain availability and help stabilise inflation and exchange rate expectations.
Moreover, Dr. Mushayavanhu stated that the RBZ has worked to increase the supply of foreign currency specifically for importing capital and intermediate goods to support industrial activity.
From December 2022 to January 2025, Zimbabwe’s total monthly imports averaged US$800 million. Capital goods made up 19% of this, averaging US$140 million, while intermediate goods accounted for 53%, or US$470 million, together representing 70% of the country’s total imports.
These policy measures have helped raise industrial capacity utilisation from 36.4 percent in 2020 to consistently above 50% since 2021.
The central bank governor has urged for strategic cooperation between the public and private sectors to fully unlock Zimbabwe’s business potential by boosting competitiveness and promoting infrastructure and skills development.
He stressed that such collaboration and partnerships are essential for creating and executing pro-business policies that simplify regulations and encourage investment, productivity, and economic growth.