Malawi Inflation slows down to 20.0 Percent in August 2026

The general price level of goods and services eased to 20.0 percent in August 2026, down from 20.8 percent recorded in July 2026, reflecting a reduction of 0.8 percentage points. Food inflation eased to 13.4 percent, compared to 14.3 percent in the previous month, while non‑food inflation declined to 31.8 percent from 32.2 percent over the same period.

Food prices remain the major driver of inflation

The moderation in the inflation rate observed in August 2026 was primarily attributed to easing food price pressures relative to the same period in the previous year. Although the food index registered increases in both August 2025 and August 2026, the rise in August 2026 was comparatively lower. This contrasting movement contributed to a reduced year‑on‑year inflation rate for the month under review.

Table 1: Inflation rates and CPIs for June, July and August 2026

Food prices remain the primary driver of inflation in Malawi. In August 2026, prices for key cereals such as maize and maize flour increased moderately. Despite notable declines in vegetable prices, including tomato, onion, tanapose, and cabbage, these movements collectively resulted in a higher food index.

An analysis of food price trends over the past twelve months shows that prices rose moderately in August 2026, compared to sharper increases in August 2025. This development resulted in a decline in year‑on‑year food inflation, reflecting easing food price pressures.

Non-food inflation rate moderates to 31.8 percent

The non‑food index rose moderately, driven mainly by rising charcoal and firewood prices under the Housing, Water, and Electricity category. Additional upward pressure came from items in Clothing and Footwear, Restaurants and Hotels, and Health. Overall, the increase in the non‑food index was slightly lower than that observed during the corresponding period in 2025, resulting in a moderate decline in year‑on‑year non‑food inflation to 31.8 percent.

Year-on-Year inflation rate

In summary, the overall price index in August 2026 rose at a slower rate compared to August 2025, leading to a decline in the year‑on‑year inflation rate to 20.0 percent, down from 20.8 percent recorded in July 2026.

Month-to-month inflation stagnates 2.0 percent

In August 2026, the national month‑to‑month inflation rate stood at 2.0 percent, reflecting the overall percentage change in the general price level of goods and services between July and August 2026. Food inflation reached to 2.5 percent, compared to 2.9 percent in July 2026, while non‑food inflation increased to 1.7 percent from 0.7 percent over the same period.

In urban areas, the month-to-month inflation rate registered 1.8 percent, driven by a 2.7 percent increase in food prices and a 0.7 percent rise in non‑food prices.

In contrast, rural areas experienced a higher month-to-month inflation rate of 2.1 percent, largely due to a 2.4 percent rise in food prices, while non‑food prices increased by 1.6 percent.