Food prices drop, but electricity costs weigh on families

Malawian families may be paying less for some food items, but the cost of living remains a daily struggle as other essential expenses continue to soar.

The Reserve Bank of Malawi (RBM) says improved food supplies have helped slow inflation, but higher electricity tariffs and the rising cost of imported goods are continuing to strain household budgets.

The RBM’s Monetary Policy Committee (MPC) announced on Thursday that it had maintained the policy rate at 24 percent, saying the current monetary policy stance remains appropriate to keep inflation on a downward path while protecting macroeconomic stability.

According to the central bank, headline inflation fell to 22.9 percent in the second quarter of 2026 from 24.3 percent in the first quarter, mainly due to lower food inflation as food became more readily available across the country.

However, the MPC noted that many Malawians are yet to feel significant relief because non-food inflation remains high, driven by electricity tariff adjustments and continued imported inflation.

MPC Chairperson George Partridge said the committee recognised that inflation was easing but warned that risks remained.

“The current monetary policy stance remains appropriate to support the ongoing disinflation process while preserving the progress made towards restoring macroeconomic stability,” said Partridge.

He added that maintaining the policy rate at 24 percent would allow previous monetary policy measures to continue working through the economy, while cautioning that premature easing could reverse the gains made in reducing inflation.

The central bank projects headline inflation to average 22 percent in 2026, down from 28.4 percent last year, although it warned that global supply disruptions and the possibility of El Niño during the 2026/27 agricultural season could push prices higher again.