Malawi’s year-on-year inflation rate dropped to 27.9% in November 2025, down from 29.1% in October, mainly due to slower increases in food prices. The decline in food inflation, which eased to 30.1%, helped reduce overall inflation pressures. However, non-food inflation continued to rise, reaching 24.2%, driven by higher costs for fuel, transport, and other household essentials. On a month-on-month basis, inflation stood at 2.3%.
Modest Improvement, But Underlying Pressures Persist
While the drop in headline inflation offers some relief, it reflects a modest improvement after several months of persistent price growth. Despite this, inflation remains among the highest in the region, with underlying pressures continuing to build. Non-food inflation, in particular, highlights that households are still grappling with higher costs in key areas such as fuel and transport. These increases have a ripple effect, raising the prices of many goods and services.
Impact on Consumers
Consumer groups have warned that while inflation readings are lower, households may not feel immediate relief. In low-income economies, price declines typically lag behind inflation trends, which means consumers may continue to face high prices for several months. Real incomes remain under pressure, particularly for urban households that spend a larger share of their income on non-food items.
Economic Outlook
Economists expect inflation to remain elevated into 2026, citing persistent structural supply constraints, food shortages, and logistics challenges. Weather-related risks and the country’s reliance on food imports make Malawi vulnerable to price shocks, and fuel price increases have raised production and distribution costs, limiting the impact of easing food inflation.
Without improvements in food supply, transport efficiency, and foreign exchange availability, inflation is likely to remain high. The current slowdown may indicate stabilization rather than a sustained downward trend, keeping cost-of-living concerns at the forefront of economic discussions in the months ahead.
