Zimbabwe’s annual inflation for the ZiG currency rose to 4.4 percent in March 2026, up from 3.8 percent recorded in February, latest data from ZimStats shows, confirming central bank warnings of a short-term uptick in prices driven largely by external shocks.
The increase marks a 0.6 percentage point rise month-on-month in annual terms, keeping inflation within single-digit levels but signaling emerging pressure in the domestic price environment.
Month-on-month ZiG inflation also climbed to 0.5 percent in March, from 0.1 percent in February, reflecting a modest acceleration in price increases across key sectors.
ZimStat attributed the March price gains primarily to increases in the transport division, followed by food and non-alcoholic beverages, categories that are particularly sensitive to global fuel price movements and supply chain costs.
Annual USD inflation rose to 1.3 percent in March from 0.9 percent in February, while month-on-month USD inflation mirrored the ZiG trend at 0.5 perent, up from 0.1 percent previously.
The latest figures align closely with projections by the Reserve Bank of Zimbabwe (RBZ), which last month warned of a temporary inflation “blip” in the second quarter of 2026, driven by rising global oil prices.
RBZ Governor John Mushayavanhu indicated that the central bank expected inflationary pressures to build slightly between March and May before stabilising.
“While the recent oil price shock is expected to increase prices in the near-term, the MPC assessed that month-on-month inflation will slightly increase in March, April and May 2026, before returning to steady state levels from June,” Mushayavanhu said following last month’s Monetary Policy Committee (MPC) meeting.
The central bank had also anticipated a corresponding “level shift” in annual inflation but maintained confidence that inflation would remain within single-digit territory throughout the year.
The recent uptick interrupts a broader disinflation trend that saw annual inflation fall to 4.1 percent in January and further to 3.85 percent in February, marking one of the most stable price periods Zimbabwe has experienced in decades.
Authorities attribute that stability to tight monetary policy and strong economic growth, estimated at above 6.6 percent in 2025, alongside relatively anchored inflation expectations.
However, the renewed pressure highlights Zimbabwe’s vulnerability to global commodity price swings, particularly fuel, which feeds directly into transport and production costs across the economy.
Despite this, the RBZ has held its policy stance firm, keeping the benchmark interest rate at 35 percent and maintaining statutory reserve requirements at 15% for savings and time deposits, and 30 percent for demand deposits.
The central bank says this cautious approach is designed to prevent second-round inflation effects and preserve macroeconomic stability. – TML