INFLATION DECLINES FOR THE FOURTH CONSECUTIVE MONTH

  

Malawi’s Inflation rate continues to descend little by little reaching to 27.1 percent in June 2025 supported with a softening of food prices According to National Statistical Office (NSO) Inflation rate has reduced from its peak of 35 percent in January 2024

Currently Food inflation which counts for more than half of the country’s basket dropped to 31.6 percent from 44.9 percent as recorded in January while non-food inflation has eased to 20.1 percent from 22 percent in January 2024

While there has been a decline in the numbers inflation is still high and this contributes to high prices of commodities and this affects everyone especially  lower income households that spends a larger share of their income on food ,housing ,transport and other necessities

According to Deputy Governor for the Reserve Bank Dr.Kisu Simwaka says that the overall inflation environment is improving adding that the continued decline inflation is opening potential policy space to reduce interest rates he added that the monetary policy committee will meet in the coming days to discuss about the inflation rate 

“The monetary policy committee will assess progress based on the totality of the incoming data the evolving inflation outlook and balance of risks ,based on this assessment they will decide whether to reduce or hold policy rate constant , while waiting for further data” Dr. Simwaka said

     

Economists have said that Malawi has a potential of achieving a permanent lower inflation if there is an effective supply-side response as well as more exports and improved agriculture productivity will help to deal with the raising inflation rate which put pressure on the interest rate