The Economist Intelligence Unit (EIU) has forecast Malawi’s 2025 annual inflation rate to close at 27.6 percent from 28.1 percent compared to Malawi Government’s projection of 28.9 percent. The revised forecast by EIU, a research unit of the Economist Group of UK, comes at at a time inflation rate has averaged 29.4 percent in 11 months from January to November 2025, according to National Statistical Office (NSO) monthly inflation figures. The review by the EIU follows the easing of inflation from 29.1 percent in October to 27.9 percent in November 2025.
Reads part of the report: “The EIU marginally revised down its 2025 inflation forecast to average 27.6 percent over full year down from 28.1 percent previously. “This will be a result of high base effects and will moderate the rate of price growth.” Writing on his Facebook page last week, Reserve Bank of Malawi deputy governor for economics and regulation Kisu Simwaka said the easing of inflation, which came following the dropping of maize prices by six percent in November, looks set to continue. “It is the stubborn nature of inflation that has made the Reserve Bank hesitant to reduce interest rates,” he said.
In an interview yesterday, Consumers Association of Malawi executive director John Kapito said yesterday the drop in inflation despite being welcome is insignificant to consumers as prices of goods are still high. Economics Association of Malawi president Bertha Bangara-Chikadza told The Nation last week that inflation trends highlight the country’s underlying food pressures.
