Africa-Press – Malawi. Malawi’s headline inflation—the rate at which commodity prices change over time—has risen to 27.3 percent in July 2025, making it the highest in the sub-Saharan Africa region.
According to a Market Intelligence Report issued by the Reserve Bank of Malawi (RBM), the sharp increase is largely driven by soaring food prices, which rose by 31.6 percent.
The RBM report shows that while other countries in the region reported easing inflation rates, Malawi’s inflation trend moved in the opposite direction.
In Angola, headline inflation dropped marginally to 22.4 percent, while in Namibia it eased to 3.5 percent. South Africa also recorded a slowdown, with inflation at 5.3 percent, reflecting better food supply and moderated fuel costs.
In contrast, Malawi’s inflation continued to rise sharply, worsened by food and transport costs. The RBM noted that although Malawi’s economy is showing signs of recovery, persistent structural challenges remain—particularly around agriculture, energy supply, and foreign exchange stability.
RBM Governor McDonald Mafuta Mwale stressed that despite the current difficulties, Malawi is on a path to self-sustaining growth. He pointed out that the Monetary Policy Committee has maintained a tight monetary policy stance, holding the base rate at 26 percent to curb demand-side pressures.
However, the report cautioned that high inflation remains a major threat to economic stability, eroding household incomes and limiting growth potential.
Economists argue that resolving supply chain bottlenecks, diversifying agricultural production, and boosting forex reserves will be crucial in reversing the inflationary trend.
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