Monthly inflation rates in Zimbabwe eased in October, both in the local currency, the ZiG, and in US dollar terms, according to data released by the Zimbabwe National Statistics Agency (ZimStat). Despite the monthly slowdown, annual ZiG inflation rose again, while the annual rate in US dollars declined.

In October, monthly ZiG inflation stood at 0.2%, down from 0.5% in September, a decrease of 0.3 percentage points. In US dollar terms, the monthly rate also retreated, falling from 0.3% to 0.1%, a decline of 0.2 percentage points. Over the same period, annual US dollar inflation eased from 3.5% to 3.2%.

Annual ZiG inflation, however, moved in the opposite direction, rising to 4.3% in October from 3.7% in September, an increase of 0.6 percentage points. Thomas Chikadaya, head of statistics at ZimStat, said the Reserve Bank of Zimbabwe nonetheless expects annual inflation in the local currency to end 2026 below 5%.

The broader deceleration trend was also reflected in overall consumer price developments. Blended monthly inflation, which accounts for prices across different currencies, fell from 0.3% in September to 0.1% in October. Blended annual inflation, measured by the Consumer Price Index (CPI), which tracks the evolution of prices for goods and services, edged down from 3.6% to 3.5%, according to Chikadaya.

To keep annual inflation in single digits through the end of 2026, the central bank is maintaining a tight monetary policy stance and a commitment to refrain from lending. Price stability, however, continues to face headwinds from both domestic and external factors, including conflicts in the Middle East, which have contributed to higher international crude oil and logistics costs.

On the domestic front, transport costs rose 12.9% year-on-year, placing pressure on supply chains. At the same time, more expensive imported goods have pushed up costs for manufacturers and retailers, with the risk of feeding through to final consumer prices. Chikadaya noted that price increases recorded in October were concentrated primarily in transport services, though inflation dynamics varied across the country’s provinces.

Regional disparities were also evident in monthly US dollar inflation. Bulawayo and Matabeleland South posted the highest rates at 0.3% each, followed by Manicaland and Matabeleland North at 0.2%. Mashonaland Central, Mashonaland West, Midlands, and Masvingo recorded rates of 0.1%, while Mashonaland East and Harare registered no monthly change, with inflation at 0%.

On an annual basis, Matabeleland South also recorded the highest US dollar inflation rate at 4.2%, followed by Masvingo at 3.9% and Midlands at 3.7%. Mashonaland West posted 3.4%, Manicaland 3.3%, and Bulawayo 3.0%. Mashonaland Central and Harare both recorded 2.9%, while Matabeleland North and Mashonaland East registered the lowest annual rates at 2.6% each.