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Alarm As Zimbabwe\u2019s Inflation Rises\u2026<\/p>\n<\/p><\/div>\n
Tinashe Sambiri\u2013 Zimbabwe recorded an uptick in inflation for March 2026 in both local currency (ZiG\/ZWG) and United States dollar terms, with rising fuel costs pushing up prices for transport and basic food items.<\/p>\n
Information released by the Zimbabwe National Statistics Agency (ZIMSTAT) on Thursday, 26 March, indicates that annual inflation in ZiG climbed to 4.4%, compared to 3.8% recorded in February.<\/p>\n
Inflation measured in USD also increased, reaching 1.3% from the previous month\u2019s 0.9%.<\/p>\n
ZIMSTAT noted that prices rose modestly on a monthly basis, stating: \u201cThe ZWG month-on-month inflation rate was 0.5 per cent in March 2026, gaining 0.4 percentage points on the February 2026 rate of 0.1 per cent.<\/p>\n
\u201cThe month-on-month inflation rate is given by the percentage change in the price index of the reference month compared with the index of the previous month.\u201d<\/p>\n
The agency also confirmed that year-on-year inflation in ZiG continued to rise, driven largely by key consumer sectors. It said: \u201cThe year-on-year inflation rate is given by the percentage change in the price index of the reference month of a given year, compared with the price index of the same month in the previous year.<\/p>\n
\u201cFor the month of March 2026, increases in the index were mainly observed on the Transport division followed by Food and Non Alcoholic Beverages division.\u201d<\/p>\n
In USD terms, monthly inflation followed a similar pattern, increasing to 0.5% in March from 0.1% in February. ZIMSTAT explained that this reflects ongoing price pressures across essential categories.
\u201cThe USD year-on-year inflation rate (annual percentage change) for the month of March 2026 as measured by the all-items USD Consumer Price Index (CPI), was 1.3 percent, gaining 0.4 percentage points on the February 2026 rate of 0.9 percent,\u201d the agency said.<\/p>\n
\u201cThe year-on-year inflation rate is given by the percentage change in the price index of the reference month of a given year, compared with the price index of the same month in the previous year.<\/p>\n
\u201cFor the month of March 2026, increases in the index were mainly contributed by Food and Non-Alcoholic Beverages and Transport divisions.\u201d<\/p>\n
Meanwhile, Reserve Bank of Zimbabwe Governor John Mushayavanhu cautioned that inflationary pressures may persist in the short term, largely due to fuel price adjustments. He said: \u201cThe increases in domestic fuel prices are likely to have second-round effects through adverse inflation expectations, which need an appropriate monetary policy response.<\/p>\n
\u201cWhile the recent oil price shock is expected to increase prices in the near-term, the MPC assessed that the month-on-month inflation will slightly increase in March, April and May 2026, before returning to its steady state levels from June 2026.<\/p>\n
\u201cAs a result, there will be a slight level shift in annual ZiG inflation, which, however, will stay within the single-digit level throughout 2026 and the outlook.\u201d<\/p>\n
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