In the midst of a cost of living crisis, experts have said 2025 could be one of the toughest years for consumers as they continued to grapple with prolonged economic strain due to rising living expenses that have diminished purchasing power and altered spending behaviours. During the year, the cost of essential items continued to rise amid persistent high inflation recorded at 27.9 percent in November while wage increases have not kept pace. The amount of money required for a typical household to meet the monthly survival needs as monitored by the United Nations World Food Programme (WFP) Survival Minimum Expenditure Basket (Smeb) stood at K237 500 in October 2025.
Compiled by WFP since April 2020, Smeb represents the minimum cost required to meet basic food and non-food needs through market purchases over a period of a month. The food commodities used in calculating Smeb are those that make up a traditional rural and urban diet. The minimum wage, currently at K126 000 per month for employees in formal employment and K72 800 for domestic workers, was last reviewed in June this year.
This is against a cost of living for a family of six per month of close to K1 million. Centre for Social Concern (CfSC) economic governance officer Agnes Nyirongo observes that the cumulative effect of these increases has been particularly harsh for low-income earners. She said because of this situation, households have been forced to reduce the quantity and nutritional quality of their meals, often prioritising food expenditure over critical needs such as healthcare, education and sanitation.
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Said Nyirongo: “With wages remaining stagnant and purchasing power eroding, urban households who depend almost entirely on market purchases are feeling the heaviest burden. “The situation highlights deepening economic vulnerabilities at household level, especially in cities where there are limited opportunities for subsistence farming.” But employers insisted that individual firms will have to respond to the situation depending on their productivity, profitability and affordability of the wages and benefits to be offered to the employees. Employers Consultative Association of Malawi executive director George Khaki said to increase the wages, employers also need to look at several factors, including productivity rates of the employees, profitability rates of the employers and affordability of the wages.
He said: “Wages cannot be looked at in isolation. We must understand that the current operating economic environment with high inflation, shortage of foreign exchange, high interest rates and shortage of fuel are also impacting on the productivity of employers.” But the stance by the employers did little to change the mindset of workers who are burdened by the rising costs against stagnated incomes and are being subjected to the worst cost of living crisis. Malawi Congress of Trade Unions president Charles Kumchenga said they have on a number of occasions urged government to intervene to stabilise the economy.
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