Zimbabwe and Zambia report declining annual inflation rates

Zimbabwe and Zambia are reporting significant declines in annual inflation rates for August 2026.

In Zimbabwe, annual inflation for the ZiG currency fell to 2.9% in August, down from 3.2% in July. The Reserve Bank of Zimbabwe attributes this to exchange-rate stability and prudent monetary policy. While the central bank views this as evidence of stability, some economists express caution regarding whether the public will adopt the ZiG for long-term savings. Citigroup has noted that Zimbabwe is undergoing a notable economic turnaround, aided by gold and lithium sectors and an IMF-supported programme, though the economy remains highly dollarized.

In Zambia, the annual inflation rate eased to 6.2% in August, down from 6.5% in July. The Zambia Statistics Agency reported that annual food inflation fell to 6.0% and non-food inflation dropped to 6.6%. This decline is attributed to price movements in cereals, sugar, cooking oil, and fuels. The current rate places Zambia within the Bank of Zambia’s target range of 6% to 8%.