Archive · 29 Jan 2026
Zimbabwe inflation drops to single digits for first time since 1997
Zimbabwe's inflation rate has dropped to 4.1% in January 2025, which is the first time it has been in single digits since 1997.
This is good news for the country because it shows that their new gold-backed currency, called the Zimbabwe Gold (ZiG), is working better.
The government wants the ZiG to be the only currency used in Zimbabwe by 2030.
They have been working hard to make sure the currency is stable and trusted.
The ZiG is backed by gold and other foreign reserves, which have increased significantly since it was introduced in April 2024.
This success comes after many years of problems with high inflation and using foreign currencies like the US dollar.
The government is hopeful that this new currency will help the country achieve economic stability.
Zimbabwe's annual inflation rate fell to 4.1% in January 2025, the first single-digit rate since 1997.
The gold-backed ZiG currency's reserves rose to $1.2 billion by December 2025, up from $276 million in April 2024.
The government aims to make the ZiG the sole legal tender by 2030, with strict benchmarks for inflation and reserves.
Past attempts at a local currency failed due to fiscal indiscipline and money printing.
The Reserve Bank of Zimbabwe is implementing well-coordinated monetary and fiscal policies to maintain price stability.
- Who
- Zimbabwean government and Reserve Bank of Zimbabwe
- What
- Inflation rate dropped to single digits, bolstering the ZiG currency push
- When
- January 2025
- Where
- Zimbabwe
- Why
- To establish the ZiG as the sole legal tender by 2030 and achieve macroeconomic stability
- Inflation Rate
- 4.1% in January 2025
- Previous Inflation Rate
- 15% in December 2024
- Last Single-Digit Inflation
- 1997
- ZiG Foreign Reserves
- $1.2 billion by December 2025
- Initial ZiG Reserves
- $276 million in April 2024
- Target Year for Sole Currency
- 2030