Malawi’s year-on-year headline inflation rose to 30.7 percent in February 2025, up from 28.5 percent in the preceding month, figures released by the National Statistical Office (NSO) show.
According to NSO, the increase in the inflation rate has been driven by a surge in food prices, which rose to 38.5 percent from 36 percent in January.
Further, the non-food inflation rate has also increased to 18.5 percent from 16.9 percent during the month.
The urban month-to-month inflation rate is at 4.0 percent while urban food and non-food inflation rates stand at 4.9 percent and 2.7 percent, respectively.
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The rural month-to-month inflation rate is at 3.8 percent.
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Rural food and non-food inflation rates stand at 3.9 percent and 3.4 percent, respectively,” the NSO stats flash reads.
The rising inflation rate is likely to put pressure on households, particularly those in urban areas, where the cost of living is already high.
In an interview, economist Marvin Banda said positive variance in the month-to-month rate has an effect on the All Consumer Price Index (CPI) aggregate.
“The agricultural cycle is responsible for that. What was not expected is the actual nominal price of goods and services that constitutes the CPI. Those margins have a great effect.
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“However the rural inflation seems to be easing due to quicker access to farm early harvest to help expose market availability differences of food to the urban areas. Logistical support means that the tick up is noticeable,” Banda said.
In a separate interview, Economics Association of Malawi President Bertha Chikadza said the gradual increase in year-on-year inflation highlighted persistent inflationary pressures, predominantly driven by rising food prices.
She said the trend aligned with seasonal patterns, as food availability typically declines from December to early March—which is a lean period for the country—thereby exacerbating price volatility.
“We anticipate a rebound in agricultural output soon, which should help ease food price pressures,” Chikadza said.
Another economist Velli Nyirongo said Malawi was facing severe economic challenges, levels typically associated with economic distress.
Nyirongo said such high inflation eroded purchasing power, particularly affecting lower-income households who spend a larger proportion of their income on food and increasing poverty levels.
“It likely signals underlying economic imbalances that may require significant policy intervention from Malawi’s central bank and the government,” Nyirongo said.
