Malawi’s inflation rate remained among the highest in sub- Saharan Africa, according to the Reserve Bank of Malawi’s (RBM) latest Market Intelligence Report for April published on Monday.
The trend is despite headline inflation’s continued downward trajectory in April 2025, falling to 29.2 percent from 30.5 percent in March.
However, the central bank warned that inflation risks remain elevated due to structural constraints, global price fluctuations, and exchange rate volatility.
“The moderation in price pressures was driven by a decline in food inflation, which softened to 35.8 percent from 37.7 percent in the preceding month,” the RBM report reads.
Across the region, RBM says inflation dynamics varied widely, shaped by currency performance, commodity prices, and local policy measures.
For instance, neighboring Zambia maintained a stable inflation rate of 16.5 percent, as easing food prices offset rising transport costs.
Similarly, Mozambique experienced a sharp drop in inflation to 3.9 percent, with significant moderation in food and beverage prices.
Angola saw inflation drop to 22.3 percent, supported by a stable currency and slower price growth in services, while Ghana’s inflation eased to 21.2 percent, continuing a five-month decline aided by a stronger cedi.
Nigeria’s 23.7 percent inflation, although second highest to Malawi, was still on the lower side thanks to falling prices for staple foods like maize and wheat.
Botswana posted the region’s lowest inflation at 2.3 percent, driven by lower transport and clothing costs.
Economist Marvin Banda said the current trend is reflective of long-standing structural weaknesses in the Malawian economy.
“The economy has been unable to shake off the inflation fever for the past five years. Recent shocks have only exposed the fragility of our internal macroeconomic infrastructure,” Banda said.
He cited weather shocks, skyrocketing fertilizer costs, and deteriorating soil yields as key factors undermining food production and contributing to high food inflation.
“Food inflation has been high, which has elevated headline inflation. This has also been the saving grace for the economy not to be classified as hyper-inflationary. It is the potentially transitory nature of the inflationary forces that do not translate to the monetary stream to satisfy the other parameters required to receive the classification,”
Banda emphasized that addressing Malawi’s inflation challenge will require improved agricultural productivity.
“The best way to tame inflation has remained the same; boost food production across the entire year. NEEF has to be commended for trying to energize winter cropping to help ease food inflation. The initiative has contributed to a near 33% to the national food stock which means that through catalytic interventions the economy can be stimulated into productivity,” he said.
