Malawi’s headline inflation, seen at 30.7 percent in February 2025, is the highest in the Southern African Development Community (Sadc) region, recent figures show.
Inflation data from websites of central banks in member countries reveal a worrying trend for Malawi, with a 2.2 percentage point increase in just one month whereas most of the other Sadc countries are experiencing moderate to stable inflation rates.
Some countries have even recorded deflation.
For example, Angola, which has the second-highest inflation in the region, saw its rate decrease from 26.5 to 25.3 percent between January and February 2025; Zambia’s inflation rate, at 16.8 percent in February, inched up from 16.7 percent in January; while Zimbabwe’s rate moved to 15.1 percent from 14.1 percent during the same period.
It has also transpired that most Sadc countries are maintaining inflation rates within single digits.
For example, South Africa’s inflation rate remained unchanged at 3.2 percent during the period, while Botswana recorded a slight increase from 2.5 to 2.7 percent.
Remarkably, Comoros and Seychelles recorded deflation in February at -1.9 and -0.09 percent, respectively, with Comoros showing a dramatic shift from 2.1 percent inflation in January.
In a recent publication, the National Statistical Office indicated that the increase in inflation was mainly driven by a slightly faster rate of increase in food and non-food prices recorded in February 2025 compared to February 2024.
Recently, Reserve Bank of Malawi’s Deputy Governor for Economics and Regulation Kisu Simwaka expressed optimism about the country’s inflation trajectory.
“Looking ahead, inflation appears to be much closer to its peak, and barring any fresh shocks, food inflation is expected to start declining at the start of the crop harvest, as food prices stabilise,” Simwaka wrote on his Facebook page.
But economist Marvin Banda holds that there is nothing in the macroeconomic climate that suggests that inflation will reduce to single digits.
Sadc aims to maintain inflation rates between 5 percent and 7 percent as part of its macroeconomic convergence goals.
The target is designed to promote economic stability and growth across member states.
0 Comments