Zimbabwe inflation breaks 3% floor

Zimbabwe's ZWG annual inflation dropped to 2.9% in August, with month-on-month inflation stable at 0.1%, a trend reported by ZimStat. The central bank's tight monetary policy is forcing a fragile deflationary trend, but nominal stability masks a core vulnerability. The country's dollarized informal economy remains resistant to official controls, and any policy misstep could reignite the inflationary spiral that has historically wrecked savings.