Malawi Inflation slows down to 21.1 Percent in June 2026

The general price level of goods and services eased to 21.1 percent in June 2026, down from 23.4 percent recorded in May 2026, reflecting a reduction of 2.3 percentage points. Food inflation decreased to 14.7 percent, compared to 17.6 percent in the previous month, while non‑food inflation moderated to 32.1 percent from 33.0 percent over the same period.

Food prices remain the major driver of inflation

The moderation in the inflation rate observed in June 2026 was primarily attributed to the easing of food price pressures relative to the same period in the previous year. While the food index experienced a decline in June 2026, it had risen in June 2025. This contrasting movement contributed to a reduced year-on-year inflation rate for the month under review.

Table 1: Inflation rates and CPIs for January, February and March 2025 and 2026

Food prices remain the primary driver of inflation in Malawi. In June 2026, prices of key food items, particularly cereals such as rice, maize, and maize flour moderated. Notable price declines were also observed for beans, vegetables, including tanapose, rape, and Irish potatoes. These developments contributed to a continued decline in the food index.

An analysis of food price movements over the past twelve months indicates that prices declined in June 2026 while they increased in June 2025. Consequently, the year-on-year food inflation rate decreased, reflecting easing food price pressures.

Non-food inflation rate declines marginally to 32.1 percent

In contrast, the non-food index registered a moderate decline over the same period, mainly driven by rising prices of charcoal and firewood in the Housing, Water, and Electricity category. The reduction of fuel prices effective 18th June 2026 eased the pressure on transportation. Overall, the increase in the non-food index was marginally lower than that recorded during the corresponding period in 2025, resulting in a moderate decline in the year-on-year non-food inflation rate.

Year-on-Year inflation rate

In general, the increase in the overall price index in June 2026 was lower than that observed in June 2025, resulting in a decline in the Year-on-Year inflation rate to 21.1 percent in June 2026 from the 23.4 percent recorded in May 2026.

Month-to-month inflation reaches 0.1 percent

In June 2026, the national month-to-month inflation rate, reflecting the overall percentage change in the general price level of goods and services between May and June 2026, stood at 0.1 percent from the previous month. Food inflation moderated to ‑0.3 percent, compared to ‑1.0 percent in May 2026, while non‑food inflation slowed to 0.7 percent, down from 1.0 percent over the same period.

In urban areas, the monthly inflation rate registered ‑0.2 percent, driven by a ‑0.5 percent decline in food prices and a 0.2 percent increase in non‑food prices.

In contrast, rural areas recorded a higher monthly inflation rate of 0.3 percent, largely due to a 1.1 percent rise in non‑food prices, while food prices decreased by 0.2 percent.