Malawi Inflation slows down to 19.4 Percent in September 2026

The general price level of goods and services eased to 19.4 percent in September 2026, down from 20.0 percent recorded in August 2026, reflecting a reduction of 0.6 percentage points. Food inflation eased to 12.5 percent, compared to 13.4 percent in the previous month, while non‑food inflation declined to 31.5 percent from 31.8 percent over the same period.

Food prices remain the major driver of inflation

The moderation in the inflation rate observed in September 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 September 2025 and September 2026, the rise in September 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 July, August and September 2026

Food prices remain the primary driver of inflation in Malawi. In September 2026, prices of key cereals, notably maize and maize flour, registered moderate increases. Although notable declines were recorded in fish, Irish potatoes, and vegetable prices, including tomato, onion, and cabbage, the combined effect of these movements was an overall rise in the food index.

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

Non-food inflation rate moderates to 31.5 percent

The non‑food index rose considerably, driven primarily by higher charcoal and firewood prices under the Housing, Water, and Electricity category. Additional upward pressure was observed in Clothing and Footwear, Education, and Health items. Despite these increases, the overall rise in the non‑food index was slightly lower than that recorded during the corresponding period in 2025, resulting in a moderate decline in year‑on‑year non‑food inflation to 31.5 percent.

Year-on-Year inflation rate

In summary, the overall price index in September 2026 rose more slowly than in September 2025, leading to a decline in the year‑on‑year inflation rate to 19.4 percent, down from 20.0 percent recorded in August 2026.

Month-to-month inflation reaches 1.7 percent

In September 2026, the national month‑to‑month inflation rate stood at 1.7 percent, reflecting the overall percentage change in the general price level of goods and services between August and September 2026. Food inflation slowed down to 1.1 percent, compared to 2.5 percent in August 2026, while non‑food inflation increased to 2.5 percent from 1.2 percent over the same period.

In urban areas, the month-to-month inflation rate registered 2.1 percent, driven by a 1.4 percent increase in food prices and a 3.0 percent rise in non‑food prices.

In contrast, rural areas experienced a lower month-to-month inflation rate of 1.5 percent, largely due to a 2.2 percent rise in non-food prices, while food prices increased by 1.0 percent.