Zimbabwe's inflation increased in both US dollar and local currency terms in January 2025, driven by food, housing, utilities and fuel costs, according to the national data agency.

In an update on January 28, the Zimbabwe National Statistics Agency (ZimStat) said in dollar terms, monthly inflation was 11.50%, gaining 10.9% on the December 2024 reading. On a year-on-year basis, prices rose by 14.58% from 11.50% the month prior.

On Zimbabwe Gold (ZiG) currency basis, inflation was 10.5% in January from 3.7% in December 2024. 

ZimStat has not yet started releasing yearly inflation in ZiG terms but will do so from April 2025, the first anniversary of the introduction of the gold-backed tender.

The weighted monthly price growth, encompassing the dollar and ZiG, for January was 11.6% after it gained 10.5% on the December 2024 level.

Prosper Chitambara, an economist, blamed a severe 2024 agricultural drought and the introduction of new taxes in the review period for the jump in prices.

"It could be the new taxes that have taken effect this month," he told Reuters on January 28. "The huge cost is passed on to consumers. Before the next harvest season, we are likely to see an upward trend of inflation as drought continues to exert inflationary pressures."

New taxes that took effect this month in the southern African nation include a 0.5% levy on fast food sales and 10% tax on sport betting proceeds.

Another independent economist, Tony Hawkins, said, according to the news agency, US dollar inflation had been "grossly understated" and authorities in the Southern African country were playing catch-up.

ZiG has depreciated from around 14 to the greenback in April 2024 to 26.34 as at 12 pm Zimbabwe time on January 29. Its parallel market rate, which most businesses use in their pricing, was between 35 and 40 to the dollar on the same day, per Zimpricecheck, an online platform which tracks local markets.