Malawi Inflation Falls to 19.4% in September
Malawi's annual inflation eased to 19.4% in September, its lowest since May 2022, but non-food prices are still rising at 31.5% a year. The post Malawi Inflation Falls to 19.4% in September appeared first on The Rio Times .
Malawi's inflation rate fell to 19.4% in September, marking the first time in over four years that annual price growth dropped below 20%, according to the National Statistical Office. This decrease came primarily from easing food prices, which fell to 12.5% in September from 13.4% in August. However, non-food inflation, including fuel and imported goods, remained high at 31.5%, with economists warning that gains in inflation are fragile.
The Reserve Bank Deputy Governor noted that non-food inflation is "sticky," linked to past exchange-rate changes that raised import prices. Despite the decline, food inflation outside of essentials like maize remained high at 31.5%, and economists caution that the inflation rate could rise again if non-food inflation continues to climb.
Malawi's central bank forecasts average inflation of 22% for 2026, with the government's 2026/27 national budget assuming inflation of 15% by year-end. The United States, being the largest shareholder of the International Monetary Fund, is the lender Malawi is seeking support from, and the IMF's progress toward a loan was discussed during a recent visit by an IMF team.
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