Malawi Inflation moderates to 23.8 Percent in March 2026

The overall price level of goods and services eased to 23.8 percent in March 2026 from 24.1 percent recorded in February 2026, representing a 0.3 percentage point decline. Food inflation declined to 20.0 percent, down from 20.8 percent in the previous month, while Non-Food inflation rose to 30.7 percent from 30.0 percent over the same period.

Food prices remain the major driver of inflation

The moderation in inflation rate in March 2026 was largely attributed to a slower increase in food prices compared to the same period last year. Although food prices rose in both periods, the increase in March 2026 was more moderate than in March 2025, resulting in a lower Year-on-Year inflation rate for the month under review.

Table 1: Inflation rates and CPIs for January, February and March 2025 and 2026

Food prices continue to be the main driver of inflation in Malawi. In March 2026, prices of key food items, particularly cereals such as maize, moderated, while notable increases were observed in the prices of vegetables, including tomatoes, tanapose, and Chinese cabbage, as well as in meat and fish sub-categories. Despite these increases, overall developments contributed to a decline in the food index compared to recent months.

An analysis of food price movements over the past twelve months shows that prices rose at a slower rate in March 2026 than in March 2025, resulting in a lower Year-on-Year food inflation rate.

Non-food inflation rate increases to 30.7 percent

In contrast, the non-food index registered an increase over the same period, primarily driven by higher prices of charcoal and firewood within the Housing, Water, and Electricity category. Additional upward pressure was observed in transport fares under the Transportation category, largely reflecting the fuel price adjustments implemented in January 2026. Overall, the increase in the non-food index surpassed that recorded during the corresponding period in 2025, resulting in a rise in the year-on-year non-food inflation rate.

Year-on-Year inflation rate

In general, the increase in the overall price index in March 2026 was lower than that observed in March 2025, resulting in a decline in the Year-on-Year inflation rate to 23.8 percent in March 2026 from the 24.1 percent recorded in February 2026.

 
Month-to-month inflation eases 0.6 percent

In March 2026, the national month-to-month inflation rate, reflecting the overall percentage change in the general price level of goods and services between   February and March 2026, stood at 0.6 percent from the previous month. The food inflation dropped to -0.2 percent from 3.1 percent in February 2026 while non-food inflation slowed to 1.9 percent from 3.3 percent over the same period.

In urban areas, the monthly inflation rate reached 0.7 percent, comprising a 0.1 percent increase in food prices and a 1.5 percent rise in non-food prices.

In contrast, rural areas experienced a lower inflation rate of 0.5 percent, mainly due to a 2.2 percent rise in non-food prices, while food inflation declined by 0.4 percent.