The Reserve Bank of Malawi (RBM) has reported a decline in food inflation, offering relief to Malawians and contributing to easing headline inflationary pressures.
According to a latest Market Intelligence Report, this development is cushioning consumers at a time when many continue to grapple with rising living costs.
The broader inflation environment, however, remains delicate as structural vulnerabilities, particularly Malawi’s exposure to external shocks, continue to shape inflation dynamics, the report says.
The report notes that while food prices have moderated, non‑food inflation has registered an uptick, signaling underlying risks in the economy. Encouragingly, the relative stability of the Kwacha has helped anchor inflation expectations, providing a measure of confidence to businesses and households alike.
Headline inflation eased for the second consecutive month, falling to 26.0 percent in December 2025 from 27.9 percent in November 2025, largely on account of a sharp moderation in food inflation. Non‑food inflation, however, edged up to 25.2 percent from 24.2 percent, mainly reflecting the increase in fuel prices effected in October 2025. Meanwhile, inflation averaged 28.4 percent in 2025, down from 32.2 percent in 2024.
Looking ahead, the RBM underscores the need for sustained vigilance and coordinated policy action to consolidate recent gains. The priority, it says, remains sustaining the disinflation process while accelerating economic recovery. This will require careful balancing of monetary and fiscal policies to mitigate vulnerabilities and preserve macroeconomic stability.
