Zimbabwe: ZWG Annual Inflation Rises to 4,4 Percent As Middle East Tension Drive Costs

The Guardian
Inflation
27 March 2026
New Zimbabwe (London)

Zimbabwe's annual inflation rate rose slightly to 4.4% in March 2026, driven largely by global fuel price increases linked to escalating tensions in the Middle East.

The spike in fuel costs follows the ongoing US-Iran conflict, which has disrupted supply chains in key Middle Eastern markets, a strategic source of fuel for Zimbabwe. As a result, local fuel prices have climbed to around US$2.17 per litre, putting upward pressure on the cost of goods and services.

Presenting the latest inflation figures on Thursday, the Zimbabwe National Statistics Agency (Zimstat) confirmed the marginal increase in annual inflation.

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"The ZWG year-on-year inflation rate (annual percentage change) for the month of March 2026, as measured by the all-items ZWG Consumer Price Index (CPI), was 4.4%, gaining 0.6 percentage points on the February 2026 rate of 3.8%," said Zimstat.

"This means that prices, as measured by the all-items ZWG CPI, increased by an average rate of 4.4% from March 2025 to March 2026."

On a monthly basis, inflation also showed an uptick. Zimstat reported that the ZWG month-on-month inflation rate stood at 0.5% in March, up from 0.1% recorded in February 2026.

"This means that prices, as measured by the all-items ZWG CPI, increased by an average rate of 0.5% from February 2026 to March 2026," the agency said.

Meanwhile, inflation measured in United States dollars remained relatively subdued. The USD year-on-year inflation rate for March 2026 was 1.3%, rising from 0.9% in February.

The USD month-on-month inflation rate also increased to 0.5%, from 0.1% recorded in the previous month.

Despite the upward pressure from rising fuel costs, the Reserve Bank of Zimbabwe governor, John Mushayavanhu expressed confidence that inflation will remain under control.

In a statement issued earlier this week, Mushayavanhu assured the public that inflation is expected to stay within single-digit levels throughout the year.

He added that while month-on-month inflation may continue to rise in the short term, it is projected to begin easing from June 2026 onwards.

Read the original article on New Zimbabwe.

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