Malawi inflation rate down to 32.4% in October 2024

The Year-on-Year rate of increase in prices of goods and services has slowed down to 32.4 percent, on average, in October 2024 compared to 34.3 percent recorded in September 2024. The decline in the overall rate of increase is mainly driven by a slower rate of increase in food prices compared to the same period last year. Food inflation now stands at 40.3 percent from 43.5 percent observed last month. Non-food prices, while still increasing, have registered a slight decline in the rate of increase from 21.8 percent to 21.2 percent over the same period.

Table 1: Inflation rates and CPIs for August to October 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 maize flour, rice, cooking oil, and fish increased in the month of October 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 October 2024 due to price increases in items of divisions such as Transportation, Housing, Water and Electricity, Restaurant and Hotels, and Furnishing and Household. 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 October 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 October 2024.

Month-to-month

The national month-to-month inflation rate for October 2024 stands at 1.9 percent. Food inflation rate is at 2.2 percent while Non-Food inflation rate is at 1.3 percent.