Malawi inflation rate up to 30.7 percent in February 2025

The percentage change in the overall price level of goods and services in February 2025 has risen to 30.7 percent compared to 28.5 percent recorded in January 2025. Food inflation now stands at 38.5 percent from 36.0 percent observed in January 2024. Similarly, Non-food prices have registered a slight rise in the rate of increase from 16.9 percent to 18.5 percent over the same period.

The increase in the percentage change in the overall price level is mainly driven by a slightly faster rate of increase in food and non-food prices recorded in February 2025 compared to February 2024. Despite the observed increase in overall prices of food and non-food items in both periods, the magnitude of the increase is higher in February 2025 than what was recorded in February 2024, resulting in the rise in February 2025 Year-on-Year inflation rate.

Table 1: Inflation rates and CPIs for January to February 2024 and 2025

 
High food prices, a major driver of inflation

High food prices remain the major driver of Inflation rates. Prices of food items such as maize and its products (such as maize flour), bread, rice, cooking oil, beans, tomato and other vegetables increased in the month of February 2025, resulting in an increase in the food index. The food prices rose at a faster rate compared to February 2024, resulting in an increase in the Food Year-on-Year inflation rate.

Non-food inflation rate up to 18.5 percent

Similarly, the Non-Food Index increased over the same period due to price increases in items belonging to Clothing and Footwear, Furnishings and Household Restaurants and Hotels and Housing, Water and Electricity categories. The Housing, Water and Electricity Index increases significantly due to the 16 percent hike in the electricity tariffs implemented from 1^st February 2025. Overall, the increase in the Non-Food index is higher compared to the same period in 2024, resulting in an increase in the Non-Food Year-on-Year inflation rate.

Year-on-Year inflation rate

While overall prices of food and non-food items hiked in February 2024, the magnitude of the increase is less than what was recorded in February 2025 resulting in an increase in Year-on-Year inflation rate.

 
Month-to-month

The month-to-month percentage change in the overall price level of goods and services at the national level for February 2025 stands at 3.8 percent compared to 4.7 percent registered the previous month. Food inflation rate is at 4.2 percent while Non-Food inflation rate is at 3.1 percent. The urban month-to-month inflation rate is at 4.0 percent. Urban Food and Non-Food inflation rates stand at 4.9 percent and 2.7 percent, respectively. The rural month to month inflation rate is at 3.8 percent. Rural Food and Non-Food inflation rates stand at 3.9 percent and 3.4 percent, respectively.