The percentage change in the overall price level of goods and services in December 2024 has risen to 28.1 percent compared to 27.0 percent recorded in November 2024. Food inflation now stands at 35.6 percent from 33.7 percent observed in November 2024. Non-food prices, while still increasing, have registered a slight decline in the rate of increase from 17.2 percent to 16.8 percent over the same period.
The increase in the percentage change in the overall price level is mainly driven by a faster rate of increase in food prices recorded in December 2024 compared to December 2023. Despite the observed increases in overall prices of food and non-food items in both December 2024 and December 2023, the magnitude of the increase is significantly higher in December 2024 than what was recorded in December 2023, resulting in the rise in the December 2024 Year-on-Year inflation rate.
High food prices, a major driver of inflation
High food prices is the major driver of inflation in Malawi. Prices of food items such as maize and its products, rice, bread, fish, cooking oil, and vegetables increased in the month of December 2024 resulting in an increase in the food index. The food prices rose at a faster rate compared to December 2023, resulting in an increase in the Food Year-on-Year inflation rate.
Non-food inflation rate slows down
Similarly, the Non-Food Index increased in the month of December 2024 due to price increases in items belonging to clothing and footwear, furnishings, household equipment and routine maintenance of the house, restaurants and hotels, and housing, water and electricity categories.
The increase in the Non-Food index is less compared to the same period in 2023, resulting in a decline in the Non-Food Year-on-Year inflation rate.
Year-on-Year inflation rate
While overall prices of food and non-food items hiked in December 2023, the magnitude of the increase is significantly less than what was recorded in December 2024 resulting in an increase in Year-on-Year inflation rate.
Month-to-month
The month-to-month percentage change in the overall price level of goods and services at the national level for December 2024 stands at 4.5 percent compared to 3.2 percent registered the previous month. Food inflation rate is at 6.2 percent while Non-Food inflation rate is at 1.7 percent.
The urban month to month inflation rate is at 4.3 percent. Urban Food and Non-Food inflation rates stand at 6.3 percent and 1.7 percent, respectively. The rural month to month inflation rate is at 4.7 percent. Rural Food and Non-Food inflation rates stand at 6.2 percent and 1.7 percent, respectively.
Annual average Year-on-Year inflation rate for 2024
The annual average Year-on-Year inflation rate for 2024 stands at 32.2 percent compared to 28.8 percent recorded in 2023. Annual average Food and Non-Food inflation rates are at 40.2 percent and 21.2 percent from 37.1 percent and 18.8 percent, respectively.
