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OpenZimbabwe Sees Sharp Rise In Inflation Rates For January, Both In USD And ZiG
Zimbabwe’s inflation rate saw a sharp rise in January, both in U.S. dollars and in local currency, the ZiG.
Month-on-month inflation in U.S. dollar terms increased to 11.5% in January, up from 0.6% in December.
In local currency terms, inflation also surged, reaching 10.5% in January, compared to a 3.7% rise in December 2024.
Year-on-year inflation in U.S. dollar terms accelerated to 14.6% in January, following a 2.5% increase in December.
In an update on Tuesday, the Zimbabwe National Statistics Agency (ZimStat) said:
The USD month-on-month inflation rate was 11,5% in January 2025, gaining 10,9 percentage points on the December 2024 rate of 0,6%. This means that prices as measured by the all items USD CPI, increased by an average of 11,5% from December 2024 to January 2025.
The USD month-on-month Food and Non-Alcoholic Beverages inflation rate was 16,8% in January 2025, gaining 14,9 percentage points on the December 2024 rate of 1,9%. The December 2024 USD month-on-month non-food inflation rate was 9,1%, gaining 9,1 percentage points on the December 2024 rate of 0,0%.
ZimStat’s acting director of macroeconomics, Mable Chimhore, said Zimbabwe’s inflation increased by 6.8 percentage points, rising from 3.7% in December 2024. She said:
The ZiG month-on-month inflation rate was 10,5% in January 2025, gaining 6,8 percentage points on the December 2024 rate of 3,7%.
For the month of January 2025, the ZiG CPI for housing, water, electricity, gas and other fuels contributed mostly to the month-on-month change in index (inflation rate) by a magnitude of 6,3% and followed by food and non-alcoholic beverages with a magnitude of 2,4%.
Independent economist Prosper Chitambara told Reuters that last year’s severe regional drought, along with new taxes introduced this month, likely contributed to the rise in inflation. Said Chitambara:
It could be the new taxes that have taken effect this month. The huge cost is passed on to consumers. Before the next harvest season we are likely to see an upward trend of inflation as drought continues to exert inflationary pressures.
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