The slight slowdown offers relief on paper, but for many households the reality on the ground remains tough.
Figures released by the National Statistical Office (NSO) show that inflation dropped to 23.4 percent in May from 24.3 percent in April, a decline of 0.9 percentage points, driven mainly by easing food prices.
NSO statement indicates that the decrease was largely driven by falling food prices, which have remained a key contributor to inflationary pressures in recent years.
According to a statement, annual food inflation dropped from 19.1 percent in April to 17.6 percent in May, reflecting improved price conditions for food commodities across various markets.
The reduction in food inflation helped offset continued price increases in other sectors of the economy, although non food inflation also registered a slight decline. The NSO indicated that annual non-food inflation eased marginally from 33.2 percent in April to 33.0 percent in May.
Economists say the latest figures suggest that inflationary pressures may be gradually moderating, particularly in the food sector, which has a direct impact on the majority of Malawian households.
The report further showed that the month on month inflation rate stood at negative 0.2 percent in May, compared to negative 2.5 percent recorded in April.
A negative monthly inflation rate means that average prices declined during the month, although at a slower pace than in April.
The NSO also noted varying inflation trends between urban and rural areas. Urban centres experienced a slight increase in prices, with month on month inflation reaching 0.3 percent, while rural areas recorded a decline of 0.5 percent.
According to the agency, the decline in rural inflation was mainly driven by falling food prices, which have a greater impact on households in rural communities where food expenditure accounts for a substantial share of household spending.
The latest inflation figures come as Malawi continues to face economic challenges, including foreign exchange shortages, rising production costs, and pressure on household incomes.
However, the decline in food inflation is expected to provide some relief to consumers and may signal improving market conditions following recent harvests.
Despite the improvement, inflation remains significantly above desired levels, underscoring the continued burden of the high cost of living on many Malawians.
Analysts say sustained reductions in both food and non food inflation will be critical to supporting economic stability and improving household welfare in the months ahead.
The NSO compiles inflation statistics using the Consumer Price Index (CPI), which measures changes in the prices of goods and services purchased by households across the country.
The May figures suggest that while prices remain considerably higher than they were a year ago, the pace of price increases is beginning to slow.
