{"id":22468,"date":"2026-01-15T16:01:16","date_gmt":"2026-01-15T14:01:16","guid":{"rendered":"http:\/\/jhb-webdevelopers\/channelafrica\/news\/economists-link-malawis-easing-inflation-to-food-price-controls-warn-gains-may-be-fragile\/"},"modified":"2026-02-27T16:33:26","modified_gmt":"2026-02-27T14:33:26","slug":"economists-link-malawis-easing-inflation-to-food-price-controls-warn-gains-may-be-fragile","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/economists-link-malawis-easing-inflation-to-food-price-controls-warn-gains-may-be-fragile\/","title":{"rendered":"Economists link Malawi\u2019s easing inflation to food price controls, warn gains may be fragile"},"content":{"rendered":"<div>\n<p><span data-olk-copy-source=\"MessageBody\">The figure represents the lowest inflation level recorded since January 2023, according to official data.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>The easing was driven mainly by a sharp fall in food inflation, which declined to 26.5% in December from 30.1% the previous month. Food prices carry more than half the weight in Malawi\u2019s consumer price index, making them a decisive factor in overall inflation trends.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>In contrast, non-food inflation continued to rise, accelerating to 25.2% from 24.2% in November, reflecting higher costs for housing, transport and clothing.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>Macroeconomist and President of the Economics Association of Malawi, Dr Bertha Bangara-Chikadza, said the recent slowdown reflects deliberate government intervention in food markets rather than a structural shift in price dynamics.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>\u201cFood inflation takes over 50% of the CPI basket, so any movement in food prices has a direct impact on headline inflation,\u201d she said, noting that Malawi typically experiences rising food prices between November and February during the lean season.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>This year, however, the pattern shifted after the government prioritised food availability amid widespread food insecurity linked to climate shocks, including El Ni\u00f1o-related disruptions that reduced agricultural output.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>Measures included maize imports from Zambia, increased purchases by the National Food Reserve Agency, and the reopening of Agricultural Development and Marketing Corporation depots, which helped boost supply and curb prices.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>\u201cThese actions increased the availability of maize in the market and discouraged hoarding, which pushed food prices down and pulled overall inflation lower,\u201d Bangara-Chikadza said.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>Despite the improvement, economists caution that the gains may be difficult to sustain without addressing rising production costs. Fertiliser prices have surged to between 150 000 and 170 000 kwacha per 50 kg bag, while maize prices remain far lower, raising concerns that farmers could be discouraged from planting in the coming season.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>\u201cFor the decline in food inflation to be sustained, the government needs to ensure affordable access to inputs such as fertiliser, seeds and other farming implements,\u201d she said, adding that subsidies and guaranteed markets could help support domestic production and reduce reliance on imports.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>Non-food inflation remains a growing concern, largely driven by exchange rate pressures and the cost of imports, including fuel, fertiliser, second-hand vehicles and clothing. Analysts warn that persistent increases in these areas could offset recent progress made on the food side.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>Looking ahead to 2026, Bangara-Chikadza expects inflation to continue easing over the next three to four months, but flagged risks linked to weather-related shocks. Flooding in central Malawi, a key maize-producing region, could affect harvest outcomes and reignite price pressures if supply falls short.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>She said early agricultural estimates and swift policy responses, including targeted imports or expanded irrigation, will be critical in determining whether Malawi can maintain a downward inflation trajectory through the rest of the year.<\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>&#8211;ChannelAfrica&#8211;<\/p>\n<\/div>\n","protected":false},"featured_media":22469,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-22468","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Malawi\u2019s inflation rate slowed to 26.0% in December 2025, down from 27.9% in November, offering some relief to households after a year marked by steep price increases.\u00a0","published_date":null,"news_description":"Malawi\u2019s inflation rate slowed to 26.0% in December 2025, down from 27.9% in November, offering some relief to households after a year marked by steep price increases.\u00a0","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22468\/revisions"}],"predecessor-version":[{"id":25757,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22468\/revisions\/25757"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/22469"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=22468"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=22468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}