Malawi’s headline inflation rate fell by 2.3 percentage points in June to 21.1%, down from 23.4% in May, according to a flash estimate from the National Statistical Office.
The deceleration was primarily driven by moderating food prices, offering a glimmer of relief in an economy grappling with persistent cost-of-living pressures.
Despite the monthly improvement, the annualized rate remains elevated.
Data tabulated by the Reserve Bank of Malawi (RBM) indicates that Malawi’s inflation rate is still the highest among its peer nations.
The continued high level of price growth suggests that underlying inflationary pressures have not yet been fully contained, limiting the scope for immediate monetary policy easing.
The moderation in food prices is a critical development for household budgets, given the significant weight of food items in the consumer basket.