New official figures show that the rate of price increases in Malawi, known as inflation, has started to slow down, offering some relief to households after a difficult year. However, the cost of living continues to rise sharply.

According to the National Statistical Office's latest "Stats Flash" for December 2025, the year-on-year inflation rate fell to 26.0%. This means that, on average, prices in December 2025 were 26% higher than they were in December 2024. While still very high, this is a drop from the 27.9% rate recorded in November 2025.

Food Prices Ease, But Other Costs Rise

The report reveals a split trend between food and non-food items:

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Food Inflation: Saw significant improvement, falling to 26.5% from 30.1% in November. This is crucial, as food costs take up a large portion of household budgets in Malawi.

Non-Food Inflation: Unfortunately, inflation for other items like housing, transport, and clothing moved in the opposite direction, rising to 25.2% from 24.2%.

A Tough Month-to-Month Increase

Looking just at the month of December 2025, prices nationwide rose by 3.0% compared to November. This short-term increase was driven by a 3.2% rise in food prices and a 2.6% rise in non-food prices.

The data also highlights a clear gap between urban and rural areas:

Urban areas experienced a lower monthly inflation rate of 2.1%.

Rural areas were hit harder, with a monthly rate of 3.4%. Rural food prices jumped by 3.6% in a single month.

2025 in Review: Better Than 2024, But Still a Difficult Year

When looking at the entire year of 2025, the average annual inflation rate was 28.4%. This is lower than the severe 32.2% average of 2024, indicating the overall pace of price hikes is slowing.

The average food inflation for 2025 was 33.2%, down from 40.2% in 2024.

Average non-food inflation was slightly lower at 20.7%, compared to 21.2% in 2024.

What This Means

The figures tell a story of gradual improvement from the peaks of 2024, but the situation remains severe for Malawians. A 26% annual inflation rate means money loses its value quickly, making it harder for people to afford basics. The higher inflation in rural areas is particularly concerning, as it affects the majority of the population.

The government and economists will likely view the decline in food inflation as a positive step, but the rise in non-food inflation poses a new challenge. All eyes will be on whether this slowing trend continues into 2026.