Malawi’s Inflation Rate Declines in 2025
Malawi’s annual inflation rate for 2025 stood at 28.4 percent, marking a drop of 3.8 percentage points from 32.2 percent in 2024. The decline was largely anchored by falling food prices, a trend analysts project will continue this year.
The National Statistical Office (NSO) reported that inflation fell for the second consecutive month in December 2025, easing to 26 percent from 27.9 percent in November. This was driven by decelerating food inflation, particularly due to easing maize prices.
According to NSO data, the annual average food inflation rate declined to 33.2 percent from 40.2 percent in 2024, while non-food inflation averaged 20.7 percent, slightly lower than the 21.2 percent recorded the previous year. At 28.4 percent, the average annual inflation rate was also below the Reserve Bank of Malawi (RBM) projection of 28.9 percent revised in September 2025.
RBM Deputy Governor for Operations, Kisu Simwaka is on record as having said the current trend as a sign that inflation has turned the corner, potentially paving the way for a policy rate cut to support economic growth. He stressed that the ultimate goal is to bring inflation down to single digits, and the continued decline has opened the door to a possible reduction in the policy rate.
The Monetary Policy Committee (MPC) is expected to assess inflation outcomes and the outlook at its upcoming meeting to decide whether to reduce or maintain the policy rate. In its latest Market Intelligence Report, the RBM projected an optimistic near-term inflation outlook, noting that easing food prices have strengthened Malawi’s resilience to external shocks.
At its last meeting of 2025, the RBM MPC maintained the policy rate at 26 percent due to prevailing inflationary pressures. the MPC is expected to meet at the end of this month.
