Malawi Inflation moderates to 23.4 Percent in May 2026

The overall price level of goods and services eased to 23.4 percent in May 2026 from 24.3 percent recorded in April 2026, representing a 0.9 percentage point decline. Food inflation declined to 17.6 percent, down from 19.1 percent in the previous month, while Non-Food inflation declined moderately to 33.0 percent from 33.2 percent over the same period.

Food prices remain the major driver of inflation

The moderation in the inflation rate in May 2026 was largely driven by easing food price pressures during the month compared to the same period last year. While the food index declined in May 2026, it increased moderately in May 2025, resulting in a lower 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 continue to be the main driver of inflation in Malawi. In May 2026, prices of key food items, particularly cereals such as rice, maize, and maize flour, moderated. Notable price declines were also observed for vegetables, including tanapose, rape, Chinese cabbage, 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 at a faster rate in May 2026 than in May 2025. Consequently, the year-on-year food inflation rate decreased.

Non-food inflation rate declines marginally to 33.0 percent

In contrast, the non-food index registered a moderate decline over the same period, mainly driven by rising charcoal and firewood prices under the Housing, Water, and Electricity category. Additional upward pressure was observed in transport fares under the Transportation category, largely reflecting the effects of the April 2026 fuel price adjustment. 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 May 2026 was lower than that observed in May 2025, resulting in a decline in the Year-on-Year inflation rate to 23.4 percent in May 2026 from the 24.3 percent recorded in April 2026.

Month-to-month inflation eases to -0.2 percent

In May 2026, the national month-to-month inflation rate, reflecting the overall percentage change in the general price level of goods and services between   April and May 2026, stood at -0.2 percent from the previous month. The food inflation rose to -1.0  percent from -5.6 percent in April 2026 while non-food inflation slowed to 1.0 percent from 2.6 percent over the same period.

In urban areas, the monthly inflation rate reached 0.3 percent, comprising a 0.2 percent decrease in food prices and a 1.0 percent rise in non-food prices.

In contrast, rural areas experienced a lower inflation rate of -0.5 percent, mainly due to a 1.4 percent decline in food prices, while non-food prices increase by 1.0 percent.