Malawi's inflation rate climbed to 28.5% in January 2025, up from 28.1% in December 2024, driven primarily by escalating food prices. The year-on-year inflation rate reflects a persistent upward trend in the cost of living, with food inflation reaching 36.0%, up from 35.6% the previous month. Non-food inflation also saw a slight increase, rising to 16.9% from 16.8% over the same period.
The surge in food prices, particularly for staples such as maize, rice, bread, cooking oil, and vegetables, has been a significant contributor to the overall inflation rate. The food index rose at a faster pace in January 2025 compared to the same period in 2024, exacerbating the year-on-year food inflation rate. Similarly, non-food categories, including restaurants, hotels, clothing, footwear, and housing utilities, experienced modest price increases, further pushing inflation upward.
On a month-to-month basis, the overall price level increased by 4.7% in January 2025, slightly higher than the 4.5% recorded in December 2024. Food inflation led the charge with a 6.0% monthly increase, while non-food inflation rose by 2.4%. Rural areas were hit harder, with a 5.4% monthly inflation rate, driven by a 6.8% spike in food prices, compared to urban areas, which saw a 3.3% increase.
