Malawi’s headline inflation rate fell to 21.1% in June, down from 23.4% the previous month, driven largely by a moderation in food prices.
The decline marks a continued, albeit gradual, easing of price pressures in the southern African nation, offering some relief to households and policymakers grappling with persistent cost-of-living challenges.
Despite the monthly improvement, the Reserve Bank of Malawi (RBM) remains cautious about the sustainability of the disinflation trend.
Deputy Governor Kisu Simwaka highlighted the looming threat of the El Niño weather pattern, which could disrupt agricultural output and reverse recent gains in food price stability.
The central bank has previously signaled that monetary policy tools alone are insufficient to tame inflation without complementary supply-side measures.
The warning from Simwaka aligns with broader global concerns regarding climate-driven inflation risks.