The Confederation of Zimbabwe Industries (CZI) has urged businesses to prioritise energy cost containment, optimize supply chains and seek alternatives, as the ongoing US-Iran conflict stokes inflation and disrupts raw materials access.
This comes as Zimbabwe’s month-on-month (M-o-M) US dollar inflation increased to 1.06 percent, up from March’s 0.5 percent, while M-o-M ZWG inflation surged to 1.09 percent from 0.5 percent in the same period, driven mainly by fuel price hikes and raw materials shortages triggered by the Middle East conflict.
“This acceleration, a direct result of the Israel-US-Iran war, has direct implications for businesses,” CZI said in its April 2026 Inflation and Currency Report.
The Confederation said the rising inflation signals “a renewed build up of short-term price pressures in the economy”.
“Rising M-o-M inflation increases operating costs, particularly through fuel, transport and input prices while creating uncertainty in pricing strategies and profit margins,” it said, adding that “for firms operating in price sensitive markets, the ability to pass on these costs remains constrained, leading to margin compression.”
“Therefore,” CZI said, “businesses priority should be to strengthen cost management strategies, including improving energy efficiency, optimizing supply chains and exploring alternative sources where feasible.”
It said “policy makers key focus should be on maintaining macroeconomic stability.
Commenting on the inflation trends in its April 2026 newsletter, the Zimbabwe National Chamber of Commerce said: “The main (inflation) drivers were fuel price hikes and transport costs, with food and non-alcoholic beverages also contributing.”
The industry organisation, however, said “expectations are that inflation will remain within the single digit”.
As of May 2026, global inflation trends indicate renewed upward pressure, primarily driven by surging energy and fuel costs due to the ongoing Middle East conflict.