Malawi inflation moderates to 30.5 percent in March 2025

The percentage change in the overall price level of goods and services in March 2025 has declined to 30.5 percent compared to 30.7 percent recorded in February 2025. Food inflation now stands at 37.7 percent from 38.5 percent observed in February 2025. However, Non-food prices have registered a slight rise in the rate of increase from 18.5 percent to 19.2 percent over the same period.

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

Table 1: Inflation rates and CPIs for January to March 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 bread and cooking oil stabilized in the month of March 2025 while for other items such maize products (e.g. maize flour) tomato and other vegetables, the prices declined. As a result, the increase in the food index slowed down compared to what has been observed in the recent months. A comparison of the food price increase over the last 12 months shows that in March 2025, food prices increased at a slower rate compared to March 2024, resulting in a decline in the Food Year-on-Year inflation rate.

Non-food inflation rate up to 19.2 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, Restaurant and Hotels and Housing, Water and Electricity categories. 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 March 2025, the magnitude of the increase is slightly less than what was recorded in March 2024 resulting in a decline 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 March 2025 stands at 0.8 percent compared to 3.8 percent registered the previous month. Food inflation rate is at 0.5 percent while Non-Food inflation rate is at 1.4 percent. The urban month-to-month inflation rate is at 1.3 percent. Urban Food and Non-Food inflation rates stand at 1.4 percent and 1.3 percent, respectively. The rural month-to-month inflation rate is at 0.5 percent. Rural Food and Non-Food inflation rates stand at 0.1 percent and 1.4 percent, respectively.