Zimbabwe's inflation slowed to 3.7 percent in December, down from 11.7 percent recorded the previous month, according to data released by the Zimbabwe National Statistics Agency (ZIMSTAT) on Friday. According to the ZIMSTAT, the downward trend in inflation in November and December, from a peak of 37.2 percent in October, reflects the prevailing stability of prices and the local currency, the Zimbabwe Gold (ZiG), after the central bank devalued it by 43 percent in September. While presenting the 2025 national budget to Parliament in November, Finance Minister Mthuli Ncube said he expects the ZiG month-on-month inflation to remain stable and average below 3 percent next year, backed by tight fiscal and monetary policies. He said the 2025 fiscal plan was built on single-digit inflation and a stable exchange rate to create a favorable business environment. Any deviation from these assumptions, including the widening of the premium between the official and parallel markets, will severely impact macroeconomic stability, he said.
