Rising non-food costs squeeze households

Rising non-food costs pushed up the cost of living for Malawian households in the first half of 2026 despite a decline in food prices, the Employers Consultative Association of Malawi (Ecam) has said.

Data contained in Ecam’s Cost of Living Analysis show that between January and June 2026, non-food costs surged by 30.65 percent from K233 905 to K305 607.

The development drove up the cost of basic needs, including transport by 9.73 percent to K1.129 million from K1 029 025.

Reads the analysis in part: “Food prices decreased by an average of 1.66 percent from K695 120 in January 2026 to K683 564 in June 2026.

“On the other hand, the cost of non-food items increased by an average of 30.65 percent from K233 905 in January 2026 to K305 607 in June 2026.”

In June alone, the report indicates that the cost of basic needs, including transport, fell by 1.97 percent to K1.121 million from K1.15 million the previous month as both food and non-food costs eased.

Ecam also notes that food prices dropped by 2.04 percent during the month while non-food costs decreased by 2.70 percent from K314 087 in May to K305 607 in June.

Ironically, Malawi’s year-on-year headline inflation has continued to ease during the first half, averaging 23.6 percent compared with 28.9 percent the previous year, according to the National Statistical Office (NSO).

Earlier, the Reserve Bank of Malawi (RBM) conceded that the increasing threat of rising non-food inflation could dampen the country’s inflation outlook despite easing food inflation which usually drives up prices.

The central bank said the domestic fuel pump price adjustments have amplified inflation pressures despite easing food inflation.

In an interview, Centre for Social Concern programme officer for economic governance Agnes Nyirongo observed that although food inflation is stable, transport costs have been volatile because of foreign exchange scarcity, thereby stifling business growth.

She said: “High inflation is not only squeezing households, but it is also stifling business growth.

“Rising production and transport costs are being passed on to consumers, further fuelling inflation in a vicious cycle.”

Maize, the country’s staple grain, remains central to the economy, accounting for about 53 percent of the Consumer Price Index, the aggregate basket of goods and services the National Statistical Office uses to compute inflation.

In its 2026 Monetary Policy Report, RBM projected annual inflation rate at 24.8 percent, down from 28.4 percent in 2025, citing persistent risks that could offset easing food prices.

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