ZIMBABWE’S annual ZiG inflation rate increased by 0,4% points to 4,8% in April, driven mostly by two fuel increases that occurred during the month owing to the United States and Israeli war against Iran.
Last month, the Reserve Bank of Zimbabwe (RBZ) cautioned that inflation would remain elevated between the months of March and June following fuel price increases.
These price increases first rose to US$2,05 and US$2,17 per litre of diesel and petrol, respectively, from US$1,77 and US$1,71, then to US$2,11 and US$2,23.
However, in the latest review, prices went down to US$2,09 and US$2,08 per litre of diesel and petrol, respectively, though still elevated.
Authorities have attributed the increases to the Middle East conflict, but the scale of the adjustments has also highlighted underlying cost pressures, including high taxes and levies, as well as significant free-on-board charges.
The rise in inflation underscores the continued sensitivity of Zimbabwe’s price stability to external shocks, particularly fuel price fluctuations, at a time when authorities are seeking to maintain single-digit inflation under tight fiscal and monetary conditions.
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“The ZiG year-on-year inflation rate (annual percentage change) for the month of April 2026 as measured by the all-items ZiG Consumer Price Index (CPI), was 4,8%, gaining 0,4 percentage points on the March 2026 rate of 4,4%,” the Zimbabwe National Statistics Agency (ZimStat) said in the April release of inflation data.
Month-on-month inflation for the ZiG also rose to 1,1% in April, up from 0,5% in March. ZimStat said price increases were mainly recorded in the transport division, followed by food and non-alcoholic beverages.
Meanwhile, US dollar inflation also increased, rising to 2,2% in April from 1,3% in March.
“The US dollar year-on-year inflation rate (annual percentage change) for the month of April 2026 as measured by the all-items US dollar Consumer Price Index (CPI), was 2,2%, gaining 0,9 percentage points on the March 2026 rate of 1,3% , followed by the food and non-alcoholic beverage division,” ZimStat said.
The uptick in inflation comes as authorities continue to pursue tight fiscal and monetary policies aimed at sustaining single-digit inflation after years of price instability, including bouts of hyperinflation.
Economists say that while current inflation levels remain relatively low by historical standards, external shocks such as fuel price increases continue to pose a risks to price stability.
“I really wonder the consequence of ZiG inflation in a highly dollarised economy. Imported inflation is the inevitable problem we face as a highly import-reliant economy. ZiG inflation has very little impact on a dollarised informal sector,” economist Vince Musewe said.\