EQUITY AXIS

Zimbabwe Inflation Snapshot – May 2026 *️⃣ USD inflation accelerated notably in May 2026. Annual USD inflation rose to 2.8% YoY, up from 2.2% in April 2026 and sharply above 0.9% recorded in May 2025, while USD month-on-month inflation increased to 0.3% from 1.2% in April, indicating slower monthly momentum despite stronger annual price accumulation. *️⃣ZiG inflation remains in single digits but continues to trend upward. Annual ZiG inflation reached 4.4% YoY in May 2026, unchanged from March levels but materially lower than the exceptionally elevated 92.1% recorded in May 2025, highlighting the scale of disinflation achieved over the past 12 months. Monthly ZiG inflation moderated to 0.5% from 1.1% in April. *️⃣Blended (Weighted) inflation stayed contained despite pressure in individual currency baskets. Annual blended inflation increased modestly to 3.2% YoY in May 2026, from 2.8% in April, but remained dramatically below 26.9% recorded in May 2025, reinforcing continued broad-based price stabilisation. *️⃣On a monthly basis, blended inflation recorded 0.4% in May 2026, easing from 1.1% in April 2026, suggesting that short-term price pressures softened after April’s pickup. *️⃣The inflation structure now shows a notable divergence: USD annual inflation (2.8%) remains below ZiG annual inflation (4.4%), although the gap has narrowed significantly compared with historical trends, reflecting greater convergence in pricing behaviour across Zimbabwe’s dual-currency system. *️⃣Overall, May 2026 inflation data points to continued macroeconomic stability relative to May 2025, with all major inflation measures remaining in single digits versus the extreme inflation environment observed a year earlier; however, the gradual rise from early-2026 lows suggests inflation pressures are beginning to rebuild and warrant monitoring.