By Benadetta Chiwanda Mia:
Malawi’s January 2025 headline inflation remained the highest in sub-Saharan Africa, the Reserve Bank of Malawi (RBM)’s latest Market Intelligence report shows.
Year-on-year inflation rose to 28.5 percent in January 2025 from 28.1 percent in December 2024.
RBM attributes the increase to rising food inflation, which climbed to 36 percent from 35.6 percent the previous month.
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In contrast, the report highlights that South Africa’s inflation increased to 4.5 percent in January 2025, up from 3 percent in December 2024, driven by rising costs in food, non-alcoholic beverages, housing and utilities as well as fuel.
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Zambia’s inflation remained unchanged at 16.7 percent, maintaining its highest level in over three years, as a slight moderation in the Kwacha’s depreciation provided some stability.
The country’s food inflation, however, edged up to 19.2 percent from 18.6 percent.
Meanwhile, Tanzania’s inflation was steady at 3.10 percent, supported by consistent power supply and stable exchange rates.
Mozambique experienced an inflation uptick to 4.7 percent from December’s 4.2 percent, driven by rising food prices due to Cyclone Chido’s impacts and post-election unrest that disrupted supply chains.
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Botswana’s inflation climbed to 2.5 percent in January, marking the highest rate since August 2024, reflecting acceleration from its previous steady rate of 1.7 percent.
Nigeria saw its inflation decrease significantly to 24.5 percent from 34.8 percent the previous month following the National Bureau of Statistics’ rebasing of the consumer price index (CPI) to better align with current consumption patterns.
In Angola, inflation continued to decline for the sixth consecutive month, reaching 26.5 percent in January 2025, the lowest since March 2024, aided by the Kwanza currency’s relative stabilisation.
The RBM report says January’s economic developments underline the complex interplay between global and domestic factors affecting inflation, exchange rates and commodity prices.
“On the domestic front, the persistent rise in food inflation and challenges from limited supply requires urgent policy actions to boost agricultural productivity and ensure food security. Maintaining exchange rate stability is crucial for overall economic resilience,” the bank says.
In an earlier interview, RBM spokesperson Boston Maliketi Banda expressed optimism on prospects of a decrease in inflation within the next two months, aligning with the start of the harvest season.
“We expect food prices to decline or, at worst, stabilise as more produce becomes available in the market,” Banda said.
Economics Association of Malawi President Bertha Bangara Chikadza noted that inflationary pressures significantly strained household budgets, particularly for low-income earners who spend a large portion of their income on food.
“The inflation basket comprises various components, such as utilities and transportation, which may not have experienced the same price pressures as food items. This underscores the importance of analysing month-on-month inflation trends and disaggregating the CPI to better understand the underlying dynamics,” she said.
