Zimbabwe's inflation expected to drop in 2026

Zimbabwe may see a significant drop in inflation by 2026, with the African Export-Import Bank (Afreximbank) predicting a rate of 3.9 percent, down from an estimated 55 percent in 2025. This forecast is based on the stabilization of the national currency, the Zimbabwe Gold (ZiG), and an increase in foreign currency inflows.

Stable ZiG and foreign currency inflows

The ZiG has become more stable since late 2024, supported by rising global gold prices and increased domestic gold production. This stability, along with improved access to foreign currencies, has helped reduce inflation, which dropped to 4.1 percent in January 2026, one of the lowest levels since 1997.

Monetary policy advice from Afreximbank

Afreximbank advises the Reserve Bank of Zimbabwe (RBZ) to remain cautious in its monetary policy in 2026, emphasizing the need to maintain currency stability and control inflation. The report highlights the risks posed by a potential decline in gold prices, which could weaken the ZiG and increase inflation pressures.

Historical inflation trends in Zimbabwe

Zimbabwe has experienced severe inflation in recent years, with rates reaching 255.3 percent in 2019 and 557.2 percent in 2020. These high rates were driven by a rapidly depreciating local currency and a shortage of foreign exchange. Inflation decreased in 2021 but rose again between 2022 and 2024 due to global increases in food, energy, and fertilizer prices.

ZiG's introduction and its impact

The ZiG was introduced in April 2024 to restore confidence in Zimbabwe’s monetary system. However, the new currency initially faced challenges. By the end of 2024, though, the ZiG stabilized due to rising global gold prices, increased domestic gold production, and stronger foreign currency inflows.

Foreign exchange and inflation outlook

Foreign exchange inflows have grown significantly, reaching 15.9 billion dollars between January and September 2026, compared to 11.9 billion dollars in the same period in 2025. Despite these positive developments, factors such as rising global oil prices due to Middle East tensions could still pose challenges to inflation control in the coming years.