Zimbabwe Faces Deflation with New ZiG Currency

Zimbabwe has shifted from extreme inflation to deflation with the introduction of its new currency, the ZiG (Zimbabwe Gold), which replaced the unstable Zimbabwean dollar. In May, consumer prices fell by 2.4% from the previous month, marking a significant change from the previous currency’s volatility. This is Zimbabwe’s sixth attempt in 15 years to establish a stable currency, following the Zimbabwean dollar’s repeated crashes and 80% devaluation against the US dollar earlier this year.