Malawi’s headline inflation continued its upward trend in January 2025, reaching 28.5%, up from 28.1% in December 2024. The increase remains largely driven by food inflation, particularly soaring maize prices, which have significantly impacted the cost of living.
Key Inflation Drivers:
Food Inflation Hits 36.0%
- Maize prices surged from K1,002/kg in December to even higher levels in January, with the retail price averaging K1,283/kg in the final week of the month—a 21% jump from K1,063/kg in December. Compared to January 2024, maize is now 45% more expensive, having stood at K887/kg a year ago. The increase is largely due to limited domestic supply, following a poor harvest in 2024, exacerbating food scarcity during the lean season.
- Non-Food Inflation at 16.9%
This category remains relatively stable, easing slightly from December’s 16.8%, indicating limited price volatility in non-food sectors.
- Consumer Price Index (CPI) Increases
The CPI for January jumped to 226.3 from 216.1 in December, reflecting a 4.7% month-on-month increase.
With inflation still on the rise, the key concern now is whether price pressures will ease as Malawi moves toward the harvest season or if further shocks could drive inflation even higher.
