Malawi Inflation rises to 28.2 percent in August 2025

In August 2025, the overall price level of goods and services rose to 28.2 percent, marking a 0.9 percentage point increase from 27.3 percent in July 2025. Food inflation reached 33.7 percent from 32.4 percent in the previous month. Similarly, the Non-Food inflation rate increased slightly, from 19.3 percent to 19.5 percent over the same period.

The higher inflation rate in August 2025 was mainly due to slightly faster growth in food prices compared to the same period last year. Although food prices rose in both periods, the increase in August 2025 was more significant than in August 2024, leading to a higher Year-on-Year inflation rate for the month.

Table 1: Inflation rates and CPIs for June to August 2024 and 2025

Food prices, major driver of inflation

Food prices continue to be the main driver of inflation in Malawi. In August 2025, notable increases were recorded in the prices of essential food items including maize grain and its products (e.g., maize flour), beans, meat, and vegetables, resulting in a marginal rise in the food index compared to the trend in most recent months. Analysis of food prices over the last 12 months shows that in August 2025, food prices rose more rapidly compared to August 2024, resulting in an increase in the Food Year-on-Year inflation rate.

Non-food inflation rate marginally increases 19.5 percent

On the other hand, the non-food index experienced a modest increase over the same period, driven by price increases in Clothing and Footwear, Furnishings and Household items, meals at restaurants and in hotels, and Alcoholic Drinks and Tobacco.  The overall growth in the non-food index was slightly higher than the overall growth recorded during the same period in 2024, leading to a marginal increase in the non-food Year-on-Year inflation rate.

Year-on-Year inflation rate

In general, the extent of the increase in the overall index in August 2025 was higher than the increase observed in August 2024, leading to an increase in the Year-on-Year inflation rate.

Month-to-month inflation rates

In August 2025, the national month-to-month inflation rate, reflecting the overall percentage change in the general price level of goods and services between July and August 2025, rose to 2.7 percent, up from 2.3 percent recorded in the previous month. The increase was largely driven by rising food prices, with food inflation reaching 3.3 percent, and non-food inflation up to 1.6 percent.

In urban areas, the monthly inflation rate reached 3.3 percent, comprising a 4.3 percent increase in food prices and a 1.9 percent rise in non-food prices.

In contrast, rural areas experienced a lower inflation rate of 2.4 percent, mainly due to a 2.8 percent rise in food prices, while non-food inflation registered a more modest 1.4 percent increase.