Malawi inflation rate up to 28.5 percent in January 2025

The percentage change in the overall price level of goods and services in January 2025 has marginally risen to 28.5 percent compared to 28.1 percent recorded in December 2024. Food inflation now stands at 36.0 percent from 35.6 percent observed in December 2024. Similarly, Non-food prices have registered a slight rise in the rate of increase from 16.8 percent to 16.9 percent over the same period.

The marginal increase in the percentage change in the overall price level is mainly driven by a slightly faster rate of increase in food prices recorded in January 2025 compared to January 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 January 2025 than what was recorded in January 2024, resulting in the rise in January 2025 Year-on-Year inflation rate.

Table 1: Inflation rates and CPIs for January 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), rice, bread, cooking oil, tomato and other vegetables increased in the month of January 2025, resulting in an increase in the food index. The food prices rose at a faster rate compared to January 2024, resulting in an increase in the Food Year-on-Year inflation rate.

Non-food inflation rate slows down

Similarly, the Non-Food Index slightly increased over the same period due to price increases in items belonging to Restaurants and Hotels, Clothing and Footwear, Furnishings and Household, and Housing, Water and Electricity categories. The increase in the Non-Food index is slightly 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 January 2024, the magnitude of the increase is slightly less than what was recorded in January 2025 resulting in a marginal 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 January 2025 stands at 4.7 percent compared to 4.5 percent registered the previous month. Food inflation rate is at 6.0 percent while Non-Food inflation rate is at 2.4 percent. The urban month to month inflation rate is at 3.3 percent. Urban Food and Non-Food inflation rates stand at 4.2 percent and 2.0 percent, respectively. The rural month to month inflation rate is at 5.4 percent. Rural Food and Non-Food inflation rates stand at 6.8 percent and 2.6 percent, respectively.