Malawi’s year-on-year inflation rate decreased to 27.9% in November 2025, down from 29.1% in October, primarily driven by slower increases in food prices. Food inflation dropped to 30.1%, providing some relief to the overall inflation figure. However, non-food inflation continued to rise, reaching 24.2%, reflecting higher costs for fuel, transport, and other household essentials. On a month-on-month basis, inflation stood at 2.3%.
Key Takeaways
While the drop in headline inflation offers some relief, the underlying economic pressures remain strong. Rising non-food inflation highlights that households are still absorbing higher costs for fuel and transport, which impact the prices of most goods and services. Economists predict that inflation will likely stay elevated into 2026, citing ongoing structural supply constraints, food shortages, and logistics challenges.
Consumer groups have warned that lower inflation readings don’t necessarily translate into immediate relief for households. In low-income economies like Malawi, price declines often lag behind inflation trends, meaning consumers may continue to face high prices for several months.
The current slowdown in inflation suggests a potential stabilization rather than a sustained downward trend. Without improvements in food supply, transport efficiency, and the availability of foreign exchange, inflation is likely to remain high. This may keep cost-of-living concerns at the forefront of economic policy discussions in the coming months.
Ongoing Pressures
Despite the improvement in food inflation, non-food costs are still rising. The increase in fuel prices has contributed to higher production and distribution costs, limiting the impact of falling food prices on overall inflation. Urban households, in particular, continue to feel the pinch, as they spend a larger share of their income on non-food items.
Additionally, weather-related risks and Malawi’s reliance on food imports continue to expose the country to price shocks, further complicating efforts to achieve sustained inflation control.
