Malawi inflation slows down to 27.7 percent in May 2025

The percentage change in the overall price level of goods and services in May 2025 eased to 27.7 percent down from 29.2 percent in April 2025. Food inflation now stands at 32.7 percent from 35.8 percent observed in April 2025. However, non-food prices have registered a marginal rise in the rate of increase from 19.4 percent to 20.0 percent over the same period.

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

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

Food prices, major driver of inflation

Food prices remain the major driver of Inflation rates in Malawi. With the onset of the harvest season, prices of some food items such as maize grains and its products (e.g. maize flour), rice and vegetables declined in the month of May 2025. However, other food items especially processed food items such as fish, meat, cooking oil and sugar increased during the same period. In general, the food index increased slightly 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 May 2025, food prices increased at a slower rate compared to May 2024, resulting in a decline in the Food Year-on-Year inflation rate.

Non-food inflation rate up to 20.0 percent

On the other hand, the Non-Food Index increased 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 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 increased in May 2025, the magnitude of the increase is slightly lower than what was recorded in May 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 May 2025 stands at 0.6 percent compared to -2.9 percent registered the previous month. Food inflation rate is at 0.2 percent while Non-Food inflation rate is at 1.2 percent. The urban month-to-month inflation rate is at 0.6 percent. Urban food and non-food inflation rates stand at 0.4 percent and 0.9 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 1.3 percent, respectively.