Malawi Inflation rises to 27.3 percent in July 2025

The overall price level of goods and services marginally increased to 27.3 percent in July 2025, up from 27.1 percent in June 2025. Food inflation reached 32.4 percent from 31.6 percent in the previous month. In contrast, the Non-Food inflation rate declined slightly, easing from 20.1 percent to 19.3 percent over the same period

The higher inflation rate in July 2025 was mainly due to slightly faster growth in food prices compared to July 2024. While both periods recorded food price increases, the July 2025 increase was more significant, contributing to a higher Year-on-Year inflation rate for the month.

Table 1: Inflation rates and CPIs for May to July 2024 and 2025

Food prices, major driver of inflation

Food prices remain the primary contributor to inflation in Malawi. In July 2025, notable increases were recorded in the prices of essential food items including maize grain and its products (e.g., maize flour), meat, cooking oil, and vegetables, resulting in a marginal rise in the food index compared to the trend in most recent months. Analysis of food prices over the last 12 months shows that in July 2025, food prices rose more rapidly compared to July 2024, resulting in an increase in the Food Year-on-Year inflation rate

Non-food inflation rate down to 19.3 percent

On the other hand, the non-food index experienced a modest increase over the same period, driven by price increases in Clothing and Footwear, Furnishings and Household items, meals at restaurants and in hotels, and Alcoholic Drinks and Tobacco. However, the overall growth in the non-food index was slightly lower than that recorded during the same period in 2024, leading to a decline in the non-food Year-on-Year inflation rate.

Year-on-Year inflation rate

In general, the extent of the increase in the overall index in July 2025 was higher than that observed in June 2024, leading to an increase in the Year-on-Year inflation rate.

Month-to-month inflation rates

In July 2025, the national month-to-month inflation rate, reflecting the overall percentage change in the general price level of goods and services between June and July 2025, rose to 2.3 percent, up from 1.9 percent recorded in the previous month. The increase was largely driven by rising food prices, with food inflation reaching 3.2 percent, while non-food inflation remained relatively low at 0.6 percent.

In urban areas, the monthly inflation rate reached 1.8 percent, comprising a 2.8 percent increase in food prices and a 0.5 percent rise in non-food prices.

In contrast, rural areas experienced a higher inflation rate of 2.5 percent, mainly due to a 3.4 percent rise in food prices, while non-food inflation registered a more modest 0.7 percent increase.