Malawi Inflation eases to 26.0 Percent in December 2025

The overall price level of goods and services moderated to 26.0 percent in December 2025 from the 27.9 percent recorded in November 2025, representing a 1.9 percentage point decline. Food inflation declined to 26.5 percent, down from 30.1 percent in the previous month, while Non-Food inflation rose slightly to 25.2 percent from 24.2 percent over the same period.

2025 annual average inflation rate declines to 28.4 percent

The annual average Year-on-Year inflation rate for 2025 stood at 28.4 percent, down from 32.2 percent recorded in 2024. The annual average Food inflation rate declined to 33.2 percent from 40.2 percent, while Non-Food inflation averaged 20.7 percent, slightly lower than the 21.2 percent recorded in 2024. The moderation in the annual average inflation rate largely reflects lower inflation outturns recorded during 2025, particularly in the period after October 2025.

Food prices remain the major driver of inflation

The slowdown in inflation rate in December 2025 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 December 2025 was more moderate than in December 2024, resulting in a lower Year-on-Year inflation rate for the month.

Table 1: Inflation rates and CPIs for October to December 2024 and 2025

Food prices continue to be the main driver of inflation in Malawi. During the month, prices of key food items such as cereals, including maize and rice, moderated, while a notable decline was observed in vegetable prices. These developments contributed to a slower increase in the food index compared to recent months.

An analysis of food price movements over the past twelve months shows that prices increased less rapidly in December 2025 than in December 2024, resulting in a lower Year-on-Year food inflation rate.

Non-food inflation rate increases to 25.2 percent

In contrast, the non-food index recorded a slight increase over the same period, mainly driven by rising prices of solid fuels under the Housing, Water, and Electricity category. Additional upward pressure was observed in items under the Alcoholic Beverages and Tobacco as well as Transportation categories. Overall, the growth in the non-food index exceeded that recorded in the corresponding period in 2024, leading to an increase in the Non-Food Year-on-Year inflation rate.

Year-on-Year inflation rate

In general, the increase in the overall price index in December 2025 was lower than that observed in December 2024, resulting in a decline in the Year-on-Year inflation rate to 26.0 percent in December 2025 from the 27.9 percent recorded in October 2025

Month-to-month inflation reaches 2.3 percent

In December 2025, the national month-to-month inflation rate, reflecting the overall percentage change in the general price level of goods and services between November and December 2025, reached 3.0 percent from the previous month. The food prices increased to 3.2 percent from 2.4 percent in November 2025 while non-food inflation increased to 2.6 percent from 2.1 percent over the same period.

In urban areas, the monthly inflation rate reached 2.1 percent, comprising a 2.4 percent increase in food prices and a 1.8 percent rise in non-food prices.

In contrast, rural areas experienced a higher inflation rate of 3.4 percent, mainly due to a 3.6 percent rise in food prices, while non-food inflation registered a more modest 3.0 percent increase.