Malawi’s Inflation Slows to 27.9%, Paving Way for Economic Revitalization and New Business Opportunities

Key Business Points

• Inflation rate decline: Malawi’s year-on-year inflation rate slowed down to 27.9 percent in November 2025, a 1.2 percentage points decrease from the previous month, which may have a positive impact on z handcika (business) in the country.
• Food inflation slowdown: The decline in national food inflation to 30.1 percent from 32.4 percent is a welcome development, but non-food inflation increased to 24.2 percent, which may affect mipango ya biashara (business plans) and mazoezi ya biashara (business practices).
• Caution on market relief: Consumers Association of Malawi (Cama) Executive Director John Kapito warns that the decline in inflation may not immediately translate to relief for consumers, as uzito wa bei (price pressures) can take time to ease, highlighting the need for ufahamu wa soko (market awareness) among entrepreneurs.

Malawi’s economy has shown a marginal slowdown in inflation, with the year-on-year rate easing to 27.9 percent in November 2025. According to the National Statistical Office (NSO) figures, this decline can be attributed to a decrease in national food inflation, which fell to 30.1 percent from 32.4 percent in October. However, non-food inflation increased to 24.2 percent over the same period, which may have implications for biashara ndogo ndogo (small businesses) and wafanyabiashara (entrepreneurs).

The Consumer Price Index (CPI) report also shows that the month-on-month national inflation rate for November stood at 2.3 percent, with food prices rising by 2.4 percent and non-food inflation recorded at 2.1 percent. In urban areas, the month-to-month inflation rate was 1.2 percent, while the rural month-to-month inflation rate stood at 2.8 percent. These data za soko (market data) are crucial for wafanyabiashara (business owners) to make informed decisions about their mipango ya biashara (business plans) and mazoezi ya biashara (business practices).

However, Consumers Association of Malawi (Cama) Executive Director John Kapito expressed skepticism about the decline in inflation translating into immediate relief for consumers. Kapito noted that in poor economies like Malawi’s, it can take three to four months before any easing in inflation is reflected in market prices, largely due to external cost pressures. This highlights the need for ufahamu wa soko (market awareness) and kupanga mazoezi ya biashara (business planning) among entrepreneurs to navigate the hali ya soko (market conditions).

Economist Marvin Banda attributed the recent movements in food prices to masuala ya kisiasa (politically motivated speculation), particularly following changes in government policy direction. Banda said that inflationary pressures are likely to remain elevated into 2026, driven by low food supply, transport costs, and other structural factors. This utabiri wa soko (market forecast) is crucial for wafanyabiashara (business owners) to make informed decisions about their mipango ya biashara (business plans) and mazoezi ya biashara (business practices).

As the market continues to struggle with food availability and other economic agents feel the full effects of fuel price increases, biashara ndogo ndogo (small businesses) and wafanyabiashara (entrepreneurs) must remain vigilant and adapt to the changing hali ya soko (market conditions). By staying informed about habari za soko (market news) and data za soko (market data), wafanyabiashara (business owners) can make informed decisions to navigate the uzito wa bei (price pressures) and capitalize on emerging opportunities in the soko la Malawi (Malawian market).

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