Inflation eases slightly to 30.5% in March
Latest data shows that inflation eased slightly in March, with the year-on-year overall price level increasing by 30.5 %, down from 30.7 % recorded in February 2025, the National Statistical Office (NSO) said.
The NSO attributes this slight decline to a deceleration in food price increases.
The records show that food inflation dropped to 37.7 % in March, from 38.5 % the previous month, driven by price stability in essential commodities such as bread and cooking oil.
On the other hand, non-food inflation is accelerating, with the rate climbing to 19.2% in March from 18.5% in February.
Economic analyst views this as a sign that food inflationary pressures are continuing to ease, especially when compared to sharper price rises seen in March 2024.
United Kingdom-based economist Velli Nyirongo attributed the climb to several factors.
Nyirongo said: “Most likely, this might be due to the 16% hike in the electricity tariff increase and also the currency depreciation. So, the decrease in the inflation, the slight decrease in the inflation rate at this point, we might say it’s not sustainable.
Due to some inflation risk remaining, like physical deficits, election year spending, and forex challenges.”
The economist, however, fears that other factors may cause an upset in the current trend including weather changes which affects food production among others.
“The biggest risk here is that Malawi depends very much on the rain. So if the rain hasn’t come out well that year, it means there’s going to be a drought. And the drought means there’s going to be less food, which means the inflation rate is going to go up. So there’s still a risk there as well,”
He also mentioned the forex challenge and the forthcoming September 16 general election as one of the determinants of the varying shifts in the trends.
“There’s going to be government spending for the elections as well. So these are the risks that might affect the inflation going forward,” Nyirongo highlighted.
The NSO points to rising costs in categories such as clothing and footwear, furnishings, household items, and services like restaurants and hotels, as well as housing, water, and electricity.
While the overall inflation is still on the rise, the slower increase in food prices is helping to ease the general rate of inflation compared to the same period last year.
Minister of Finance and Economic Affairs, Simplex Chithyola-Banda, earlier indicated that the inflationary pressures would ease in the medium term.
The government projected an annual average inflation rate of 24% for the 2025/26 fiscal year in the National Budget.
This projection is based on measures aimed at stabilizing commodity prices and boosting agricultural output
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