The monthly inflation rate for the Zimbabwe Gold (ZiG) currency dropped by 0.6 percentage points from May, reaching 0.3% in June, according to the Zimbabwe National Statistics Agency (ZimStat).

This decline comes as authorities continue to enforce strict measures to stabilise prices.

However, on an annual basis, inflation rose moderately to 95%, up from the initial 85.7% annual rate recorded in April, marking one year since the new local currency was introduced.

Significantly, the monthly inflation trend is the most critical indicator, as the annual rate reflects the cumulative average of monthly figures over a 12-month period. This means that consistently low monthly inflation will ultimately bring down the annual rate, The Zimbabwe Mail reports.

Zimbabwe’s inflation is continuing to decline or stabilise within the authorities’ projected range, largely due to the stringent fiscal and monetary policies being implemented by the Treasury and the central bank.

The annual inflation rate aligns with the heightened projections, largely driven by price hikes following the devaluation of the local currency in October, aimed at correcting exchange rate imbalances in the market.

“The ZWG month-on-month inflation rate was 0.3% in June 2025, shedding 0.6 percentage points on the May 2025 rate of 0.9%,” ZimStat said.

The month-on-month inflation rate represents the percentage change in the price index between the reference month and the preceding month.

According to ZimStat, in June this year the ZiG Consumer Price Index (CPI) showed that the main contributors to the monthly inflation rate, amounting to 0.3%, were increases in the cost of housing, water, electricity, gas and other fuels, as well as communication and transport.

US Dollar inflation remained subdued in June.

According to ZimStat, the month-on-month inflation rate in US Dollars stood at 0.2%, reflecting a slight increase of 0.1 percentage points from May 2025, when the rate was -0.3%.

“For the month of June 2025, the US Dollar CPI for food and non-alcoholic beverages contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of -0.2%,” ZimStat said.

Furthermore, in a consolidated view, the Weighted Consumer Price Index, which tracks price changes across both US Dollar and ZiG transactions, recorded a month-on-month inflation rate of -0.1% in June 2025. This marks a 0.1 percentage point decline from the May 2025 rate of 0.0%.

“I think we are in the right direction, though we need to sustain the gains that were made,” said Harare-based economist Dr Prosper Chitambara.

“We are seeing some measure of stability, but that needs to be sustained through continued implementation of the conservative monetary and fiscal policies and continued enhancement of efficiency in public spending.”

The Reserve Bank of Zimbabwe forecasts that annual inflation will ease to approximately 20% by the end of Q4, due to a firm monetary policy stance, enhanced market discipline, and rising confidence in the structured currency framework.