Malawi’s Economy Sees Respite: November’s Slight Dip in Cost of Living Yields New Business Opportunities
Key Business Points
- The cost of living in Malawi decreased marginally by 0.07 percent in November 2025, driven mainly by slightly lower food costs, which is a positive sign for local entrepreneurs and business owners.
- The total cost of living decreased from K975,268 in October 2025 to K974,542 in November, with food prices decreasing by an average of 0.15 percent, although non-food items increased by 0.14 percent.
- Despite this minor easing, economists warn that the cost of basic staples, such as maize and beans, remains high, and inflationary pressures continue to affect the quality of life for Malawians, making it essential for businesses to adapt to these economic conditions.
The latest Employers Consultative Association of Malawi Cost of Living Report shows that the cost of living in Malawi decreased marginally by 0.07 percent in November 2025. This decrease was driven mainly by slightly lower food costs, with the total cost of living decreasing from K975,268 in October 2025 to K974,542 in November. Zinthu z Achuma, or the cost of basic needs, excluding transport expenses, decreased by 0.08 percent from K895,268 to K894,542.
However, the report also notes that the cost of non-food items increased by an average of 0.14 percent from K216,863 in October to K217,167 in November. Transport costs remained constant at K80,000 in November. Economist Veli Nyirongo said that these figures suggest a modest but fragile easing in Malawi’s urban cost of living, driven mainly by slightly lower food costs rather than a broad improvement in economic fundamentals.
Nyirongo also noted that the stability of maize and beans prices at historically high levels points more to price stabilisation at an elevated plateau than to a meaningful reduction in the cost of basic staples. Within the basket, food costs fell by about 0.15 percent, whereas non-food expenses increased by 0.14 percent, indicating mild relief on groceries offset by continued pressure on items such as rent, soap, fuel, and other essentials.
The Economics Association of Malawi President Bertha Chikadza said that the figures were reflective of the high cost of living in the country, which continues to experience high inflationary pressures. Chikadza noted that the drop in the cost of living is significantly small, implying that the overall cost of living has remained persistently high over time, challenging the quality of life Malawians can afford.
As the 2025-26 lean season approaches, businesses in Malawi must be aware of the potential risks and challenges associated with high food prices and inflationary pressures. It is essential for local entrepreneurs and business owners to adapt to these economic conditions and find ways to mitigate the effects of high costs on their operations and mtendere, or customers. By understanding the current economic trends and zopusazi, or market conditions, businesses in Malawi can make informed decisions and thamanga, or thrive, in a challenging economic environment.
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