Inflation outlook remains delicate, says RBM

The Reserve Bank of Malawi (RBM) says the broader inflation environment remains delicate because of fresh risks of non-food inflation spike despite the current fiscal interventions easing food prices. The central bank expressed this in its latest Market Intelligence Report for December 2025, which analysed the domestic market environment, regional developments and global trends that often affect inflation direction. Reads part of the report: “The broader inflation environment remains delicate, shaped by structural vulnerabilities to external shocks.

“The uptick in non-food inflation reflects underlying risks even as the kwacha stability helps to anchor inflation expectations.” In an interview on Sunday, Centre for Social Concern programme officer for economic governance Agnes Nyirongo observed that although food inflation is stable, transport costs have been volatile because of foreign exchange scarcity, thereby stifling business growth. She said: “Rising production and transport costs are being passed on to consumers, further fuelling inflation in a vicious cycle. “High inflation is not only squeezing households, but it is also stifling business growth.” The RBM said the domestic fuel pump price adjustments have amplified inflation pressures despite easing food inflation.” Fuel prices increased by 33.4 percent in October 2025 and by 41 percent in January this year, which coupled with the recently announced 12 percent electricity tariff adjustment, risk exerting further pressure on non-food Inflation. In a Facebook post, RBM deputy governor for operations Kisu Simwaka said inflation has remained stubbornly high, above 20 percent over the last three years.