Key Trends for Zimbabwe, the Region, and Global Markets
This Monthly Economic Update highlights the most important macroeconomic, sectoral, and market developments observed in May 2025, covering inflation and cost of living, the financial sector, key productive sectors, regional economies, global trends, and commodities.
At a glance
USD inflation: YoY eased to 13.9% in May 2025; MoM declined to -0.3%.
ZiG inflation: YoY rose to 92.1% (from 85.7%); MoM increased to 0.9%.
Cost of living: TCPL rose 1.3% to ZWG 1,279.60; FPDL rose 1.6% to ZWG 876.03.
Monetary conditions: M3 increased 3.81% MoM (Apr 2025) to ZiG 87.00bn.
Policy rate: RBZ maintained the policy rate at 35%.
Commodities: Gold, platinum, and silver gained MoM, while crude oil declined.
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1) Prices and Cost of Living
USD inflation
Year-on-year USD inflation eased to 13.9% in May 2025, while month-on-month USD inflation declined to -0.3%. The softening was largely linked to global USD weakness rather than purely domestic price pressures.
ZiG inflation
ZiG inflation remained under pressure. Year-on-year ZiG inflation increased from 85.7% (April 2025) to 92.1% (May 2025), while month-on-month rose to 0.9% from 0.6%.
Food and Transport were the most volatile categories in the month, recording month-on-month CPI movements of 1.6% and 1.4%, respectively.
3-Month Inflation Forecast (Cumulative Weighted Inflation)
| Month | Y-O-Y (%) | M-O-M (%) |
|---|---|---|
| June-25 | 31.9 | 3.6 |
| July-25 | 30.8 | -0.9 |
| Aug-25 | 31.5 | 0.9 |
These projections assume no major shocks and are intended to support short-term budgeting and planning.
Poverty datum lines
The Total Consumption Poverty Line (TCPL) rose by 1.3% in May 2025 to ZWG 1,279.60 (about ZWG 7,677.60 for a six-member household). The Food Poverty Datum Line (FPDL) increased by 1.6% to ZWG 876.03 (about ZWG 5,256.18 for a six-member household), accounting for roughly 68.5% of total household costs.
2) Zimbabwe Financial Sector
Money supply (M3)
Broad money (M3) increased by 3.81% month-on-month in April 2025 to ZiG 87.00 billion (from ZiG 83.11 billion in March 2025), reversing the prior month’s decline. On a year-on-year basis, M3 growth decelerated to 124.5% in April 2025 (from 254% in March 2025).
Interest rates and liquidity conditions
The RBZ Monetary Policy Committee’s March 28, 2025, policy measures remained in effect, including maintaining the policy rate at 35% and keeping statutory reserve requirements unchanged for demand/call deposits (30%) and savings/time deposits (15%) across local and foreign currency.
What this means for customers and businesses
Borrowing costs remain elevated, which can affect working capital and expansion plans.
Liquidity conditions may tighten when currency demand rises alongside large payment obligations.
Policy direction remains focused on stabilisation, while balancing growth support.
3) Commodities Markets
Commodity prices were mixed in May 2025. Gold, platinum, and silver recorded month-on-month gains, while crude oil declined.
Average commodity prices (April 2025 vs May 2025)
| Commodity | April 2025 (US$) | May 2025 (US$) | Change |
|---|---|---|---|
| Gold (oz) | 3,216.56 | 3,278.37 | +1.9% |
| Platinum (oz) | 956.33 | 1,018.87 | +6.5% |
| Silver (oz) | 32.21 | 32.67 | +1.4% |
| Oil (barrel) | 66.22 | 63.72 | -3.8% |
Markets remained sensitive to trade tensions and policy uncertainty, influencing sentiment and demand expectations.
Disclaimer
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own independent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
