Millions of Malawians continue to struggle every day, a situation analysts say signals an urgent need for structural reforms and human-centred economic planning.
Business Review analysis on the cost of living based on Centre for Social Concern (CfSC) data show that within five years, the cost of living has soared by 317 percent from K197 980 in June 2020 to K825 250 in June 2025 for a family of six.
The cost of living crisis has been triggered by price increases in commodities such as maize, the country’s staple, beans, dry usipa, beef, cooking oil, bread, sugar, utilities, charcoal and housing.
The rise in the cost of living is coming at a time income growth has been stagnant or, in many cases, entirely absent.
Wages have not kept pace with the rise in inflation rate from 8.5 percent in June 2020 to 27.1 percent in June this year.
Though the government adjusted the minimum wage from K35 000 to K126 000 during the five-year period, it remains far below what is required to support a household of six.
Even salaries for civil servants, which constitute a large portion of formal employment, have only seen minimal increments that do not reflect the rising cost of basic goods and services.
In 2020, the lowest paid civil servant was getting at least K118 000 before deduction, but is now getting an average of K370 000.
For Blantyre-based Charles Thindwa, a health surveillance assistant with an income of K390 000, life has never been rosy.
“The money is not enough to feed my family of three, pay utilities and let alone, upscale. We are just surviving, in most cases, living from hand to mouth,” he said.
On her part, Evelyn Banda, a grade J teacher (lowest grade) said in an interview that when government allowance is included, she gets up to K430 000 a month, but the amount is not enough to meet basic needs.
“Even the grocery business that I am doing at home is not sustainable because capital is being eroded every day,” she said.
In an interview, Malawi Congress of Trade Unions president Charles Kumchenga observed that the cost of living has become unbearable for most workers in the country.
He said: “This situation has led to most companies closing down. There are also retrenchments and job cuts across the key economic sectors.
“We demanded a 100 percent increase of the national minimum wage, but the government only gave us less than 50 percent and as workers’ representatives we are not happy.”
On his part, Consumers Association of Malawi executive director John Kapito said the cost of goods and services has never corresponded with incomes.
“It is also hard for economies like Malawi to begin comparing cost of living with incomes when the majority of consumers are unemployed,” he said.
Scotland-based Malawian economist Velli Nyirongo said the drastic escalation in the cost of living in Malawi portrays a challenging macro-economic environment over the past five years.
He said the implications for consumer welfare are severe and multifaceted, including food insecurity, change of consumption baskets, increasing downward pressure on living standards and impeding progress toward socio-economic goals.
Meanwhile, CfSC economic governance officer Agnes Nyirongo observed that with daily costs exceeding income, more families are turning to informal credit or selling off assets to survive with any potential for savings or investment being wiped out which not only weakens household resilience to shocks, but also undermines the foundation for future prosperity.
She said: “The long-term consequences of a persistently high cost of living are far-reaching; economic inequality is deepening as wealth becomes increasingly concentrated in the hands of a few.
“What is most concerning is that this crisis does not show signs of slowing down. There is an urgent need for comprehensive and sustained policy action.”
Among others, CfSC has proposed regular wage structure review, expanding social protection programmes and implementing targeted price controls and temporary tax relief on essential goods while investing in domestic production.
