Malawi Inflation slows down to 20.8 Percent in July 2026

The general price level of goods and services eased to 20.8 percent in July 2026, down from 21.1 percent recorded in June 2026, reflecting a reduction of 0.3 percentage points. Food inflation eased to 14.3 percent, compared to 14.7 percent in the previous month, while non‑food inflation increased to 32.2 percent from 32.1 percent over the same period.

Food prices remain the major driver of inflation

The moderation in the inflation rate observed in July 2026 was primarily attributed to easing food price pressures relative to the same period in the previous year. Although the food index registered increases in both July 2025 and July 2026, the rise in July 2026 was comparatively lower. This contrasting movement contributed to a reduced year‑on‑year inflation rate for the month under review.

Table 1: Inflation rates and CPIs for May, June and July 2026

Food prices continue to be the primary driver of inflation in Malawi. In July 2026, prices for key cereals such as rice, maize, and maize flour moderated. However, upward price movements were recorded in the fish, meat, beans, milk, and fruit sub‑categories, contributing to a higher food index.

An analysis of food price trends over the past twelve months shows that prices rose moderately in July 2026, compared to sharper increases in July 2025. This development resulted in a decline of the year‑on‑year food inflation, reflecting easing food price pressures.

Non-food inflation rate rises marginally to 32.2 percent

Conversely, the non‑food index registered a moderate increase, driven mainly by rising charcoal and firewood prices under the Housing, Water, and Electricity category. Overall, the increase in the non‑food index was slightly higher than that observed during the corresponding period in 2025, resulting in a moderate rise in year‑on‑year non‑food inflation to 32.2 percent.

Year-on-Year inflation rate

The overall price index in July 2026 rose at a slower rate compared to July 2025, resulting in a decline in the Year‑on‑Year inflation rate to 20.8 percent, down from 21.1 percent recorded in June 2026.

 
Month-to-month inflation reaches 2.0 percent

In July 2026, the national month‑to‑month inflation rate stood at 2.0 percent, reflecting the overall percentage change in the general price level of goods and services between June and July 2026. Food inflation rose to 2.9 percent, compared to ‑0.3 percent in June 2026, while non‑food inflation remained unchanged at 0.7 percent.

In urban areas, the month-to-month inflation rate registered 1.4 percent, driven by a 2.3 percent increase in food prices and a 0.3 percent rise in non‑food prices.

In contrast, rural areas recorded a higher month-to-month inflation rate of 2.6 percent, largely due to a 3.0 percent rise in food prices, while non‑food prices increased by 2.0 percent.