Headline inflation slowed at the start of 2026 to 24.9 percent in January, down from 26 percent in December 2025, thanks to a deceleration in food prices.
The National Statistical Office (NSO) January 2026 Consumer Price Index shows that food inflation fell to 22.1 percent from 26.5 percent in December 2025.
The NSO statistics show that food inflation has gone down sharply during the past 12 months, from 36 percent recorded in January 2025 to 22.1 percent in January 2026, representing a 13.9 percentage points’ drop.
This led to 3.6 percent ease in headline inflation, year-on-year, from 28.5 percent in January 2025.
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Despite the slowdown, month-on-month food prices increased by 2.4 percent in January, meaning that consumers continue to pay more but at a slower pace.
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“The national month-to-month inflation rate for January 2026 stood at 3.7 percent. During the month, food prices rose by 2.4 percent while non-food inflation stood at 6.2 percent,” the report reads.
However, non-food inflation went up by 4.6 percentage points to 29.8 percent from 25.2 percent, which marks a structural shift in the country’s inflation dynamics.
For the greater part of 2024 and 2025, inflation pressure largely emanated from rising food prices.
However, growing pressure from transport costs, import prices, utilities and exchange-rate challenges have taken centre-stage.
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Year-on-year non-food inflation jumped by 12.9 percentage points from 16.9 percent in January 2025 to 29.8 percent.
During the Mid-Year Budget Review in November 2025, Finance Minister Joseph Mwanamvekha said the government would introduce measures for further reduction in inflation and ensure stability in basic commodities prices.
In an interview, Economics Association of Malawi President Bertha Chikadza attributed the decline to tight monetary policy and supply-side interventions implemented by the government.
“With food prices, especially maize prices, going down due to interventions being implemented so far, inflation is supposed to go down,” Chikadza said.
However, she warned that rising non-food inflation remained a concern.
To contain it, Chikadza said the government must implement further foreign-exchange interventions and improve forex availability.
“Nevertheless, this is a good development even though 24.9 percent inflation is still on the higher side,” she said.
In his State of the Nation Address on Friday, President Peter Mutharika said the government projects inflation to fall below 21 percent in 2026.
