Malawi inflation slows down to 27.1 percent in June 2025

The percentage change in the overall price level of goods and services in June 2025 eased to 27.1 percent down from 27.7 percent in May 2025. Food inflation stood at 31.6 percent from 32.7 percent observed in May 2025. However, non-food prices registered a marginal rise in the rate of increase from 20.0 percent to 20.1 percent over the same period.

The decline in the overall percentage change of the price level was primarily driven by a slower rate of increase in food prices recorded in June 2025 compared to June 2024. Although the increase in the overall price level was observed in both periods, the increase was more pronounced in June 2024. This contributed to a lower year-on-year inflation rate registered in June 2025.

Table 1: Inflation rates and CPIs for April to June 2024 and 2025

Food prices, major driver of inflation

Food prices remain the major driver of Inflation rates in Malawi. Prices of some food items such as maize grains and its products (e.g. maize flour), rice and vegetables continued to decline in June 2025. However, prices of meat and some other processed food items such as cooking oil, sugar and milk increased during the same period. In general, the food index increased slightly compared to what has been observed in the recent months. Analysis of the food prices over the last 12 months shows that in June 2025, food prices increased at a slower rate compared to June 2024, resulting in a decline in the Food Year-on-Year inflation rate.

Non-food inflation rate up to 20.1 percent

On the other hand, the non-food index increased slightly over the same period due to price increases in the following categories: Clothing and Footwear, Furnishings and Household, Restaurant and Hotels, and lastly, Alcoholic drinks and Tobacco. Overall, the increase in the non-food index was 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 increased in June 2025, the magnitude of the increase is slightly lower than what was recorded in June 2024, resulting in a decline in the 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 June 2025 stood at 1.9 percent compared to 0.6 percent registered the previous month. Food inflation rate was 2.3 percent while Non-Food inflation rate was 1.4 percent. The urban month-to-month inflation rate was 2.4 percent. Urban food and non-food inflation rates stood at 2.9 percent and 1.8 percent, respectively. The rural month-to-month inflation rate was 1.7 percent. Rural Food and Non-Food inflation rates stood at 2.0 percent and 1.2 percent, respectively.