Malawi inflation rate down to 27.3% in November 2024

The Year-on-Year rate of increase in prices of goods and services has slowed down to 27.0 percent, on average, in November 2024 compared to 32.4 percent recorded in October 2024. Food inflation now stands at 33.7 percent from 40.3 percent observed last month. Non-food prices, while still increasing, have registered a slight decline in the rate of increase from 21.2 percent to 17.2 percent over the same period.

The decline in the Year-on-Year inflation rate is mainly driven by a slower rate of increase in prices recorded in November 2024 compared to the same period last year. It is important to note that in addition to the usual factors affecting inflation, there was a sharp rise in the prices of both food and non-food items following a 44 percent devaluation in November last year.  While overall prices of food and non-food items hiked in November 2024, the magnitude of the increase is significantly less than what was recorded during the same period last year resulting in the November 2024 Year-on-Year inflation rate dropping substantially.

Table 1: Inflation rates and CPIs for September to November 2024 and 2023

High food prices, a major driver of inflation

High food prices remain the major driver of inflation in Malawi. Prices of food items such as cooking oil, meat, maize, vegetables and fish increased in the month of November 2024 resulting in an increase in the Food index. However, the increase in the Food index is by a relatively smaller magnitude compared to the same period last year, resulting in a decline in the Food Year-on-Year inflation rate.

Non-food inflation rate slows down

Similarly, the Non-Food Index increased in the month of November 2024 due to price increases in items of divisions such as Clothing and Footwear, Housing, Water and Electricity, and Furnishings, Household Equipment and Routine Maintenance of the House. The increase in the Non-Food index is less compared to the same period last year, resulting in a decline in the Non-Food Year-on-Year inflation rate.

Year-on-Year inflation rate

Overall, the movement of indices in November 2024 across the divisions has resulted in an increase in the Consumer Price Index by a relatively smaller magnitude than recorded during the same period last year, consequently decreasing the Year-on-Year inflation rate for November 2024.

Month-to-month

The national month-to-month inflation rate for November 2024 stands at 3.2 percent compared to 7.6 percent registered in November 2023. Food inflation rate is at 4.1 percent while Non-Food inflation rate is at 1.7 percent.