• Zimbabwe's ZiG inflation decreased to 3.8% in February 2026, down from 4.1% in January 2026, signalling continued stabilization
• USD inflation remained subdued at 0.9% year-on-year, driven primarily by school fee adjustments in the Education sector
• ZiG currency stability persisted at 25.57 per USD, supported by strong gold reserves and prudent monetary policies

Harare - Zimbabwe’s inflation, measured in both ZiG (Zimbabwe Gold) and US dollar terms, experienced a significant decline in February 2026, signalling improved macroeconomic stability.

According to the Zimbabwe National Statistics Agency (Zimstat) , ZiG annual inflation rate decreased to 3.8% in February, showing a modest but significant decline from 4.1% in January. This suggests a stable inflation environment, which is crucial for the broader economic health of Zimbabwe, which has historically faced volatility due to hyperinflationary cycles.

On the other hand, the month-on-month increase in ZiG inflation was 0.1%, rising from 0.0% in January 2026, driven mainly by price rises in the Miscellaneous Goods and Services sector, such as personal care and insurance. However, this uptick is relatively minor and signals that inflationary pressures are being kept under control.

In USD terms, annual inflation nosedived to 0.9% from 1.0% in January, with the month-on-month easing to 0.1% from 0.2% in January.

This stability is significant as Zimbabwe’s economy operates  80% in US dollars.

The primary contributor to inflation in USD terms was the Education sector, which experiences predictable price increases during the start of the academic term, mainly due to school fee adjustments.

 The ZiG remained stable at 25.65 against the US dollar as of February 26, 2026, reflecting its resilience amid external market pressures. The stability is supported by Zimbabwe's foreign exchange reserves, which stood at US$1.2 billion at the end of 2025, providing over one month of import cover.

Additionally, gold reserves, which totalled 2.7 tonnes by the end of 2025, have been key in backing the ZiG and preventing significant depreciation.

Zimbabwe's monetary policy has been contractionary, with a policy rate of 35% maintained to curb inflation and limit borrowing. These efforts are critical to containing monetary expansion and avoiding a return to high inflation.

Looking ahead, Zimbabwe’s reserve discipline, strong gold exports, and prudent fiscal measures are expected to maintain inflation at manageable levels. If inflation remains subdued throughout 2026, it will represent a significant achievement in Zimbabwe's efforts to stabilize its economy after decades of volatility.

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