Malawi’s headline inflation rate dropped 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, signaling a potential easing in the cost-of-living pressures that have weighed on households and businesses throughout the year.
While the monthly decline is notable, the annual 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 figures suggest a marginal easing in price growth, but the underlying inflationary pressures have not yet dissipated to a level that would allow for immediate policy normalization.
The moderation in food prices is a critical development for the central bank, which has maintained a tight monetary stance to anchor expectations.