Zimbabwe’s annual inflation could be cut in half by late 2025, supported by a more stable local currency and strong global gold prices, according to a recent report from the Confederation of Zimbabwe Industries (CZI).
The report shows that inflation measured in the Zimbabwe Gold (ZiG) currency dropped significantly—falling to 32.7% in October from 82.7% in September. The CZI now projects that inflation could decline even further, potentially reaching between 15% and 20% by December 2025.
This improvement comes after two straight months of negative monthly inflation and a period of relative stability in the ZiG, helped by rising global gold prices, Reuters reported.
“The target is to bring annual ZiG inflation down to around 30%. The negative monthly inflation recorded in the last two months increases the likelihood of meeting this goal,” the CZI stated in its October 2025 Inflation and Currency Developments Update.
As the main representative body for Zimbabwean manufacturers and industrial businesses, CZI’s economic updates are closely monitored by investors for insight into currency performance and inflation trends.
The ZiG—supported in part by gold reserves—has remained stable on official markets, with an estimated 20% premium on the parallel exchange market, according to Oxford Economics analysts.
Zimbabwe’s gold output is also expected to exceed the record 38.4 tonnes mined in 2024, buoyed by persistently strong gold prices.
After years of currency instability and hyperinflation, the recent slowdown in price increases signals a possible shift toward economic stability. Analysts say that if the downward trend in inflation continues, it could help rebuild trust in the local currency and support broader economic recovery.
