Malawi’s monthly cost of living eased by 3.3 percent between March and May as maize supplies pushed down food prices, but households still need nearly K1 million a month to meet basic needs.
The Centre for Social Concern (CfSC) basic needs basket report published yesterday shows that the average monthly cost of living eased from K1.02 million in March to about K987 844 in May, mainly due to seasonal declines in maize prices.
The monthly cost of living figure is almost eight times the national minimum wage at K126 000, which came into effect on June 1 this year.
Malawi Congress of Trade Unions had pushed for a 100 percent increase in the minimum wage.
CfSC economic governance officer Agnes Nyirongo said in an interview yesterday that despite the decline, most households still cannot afford essential goods and services.
“The reduction is largely seasonal driven by improved maize availability after the harvest, but it is too small to change the reality that the majority of households remain priced out of a basic standard of living,” she said.
Nyirongo said the mismatch between incomes and living costs is forcing many families to cut meals, delay healthcare and make other painful sacrifices to survive.
She urged the government to strengthen social protection, review the minimum wage regularly and invest in measures that stabilise food prices beyond the harvest season.
CfSC data show that a 50 kilogramme (kg) bag of maize dropped from K48 125 to about K39 375 in Lilongwe, K62 500 to K32 917 in Blantyre and K62 000 to K36 000 in Zomba while in Mzuzu, prices rose from K47 083 to K56 500.
Blantyre has emerged the most expensive city, with its monthly basic needs basket rising from K1.17 million in March to K1.18 million while Lilongwe edged down to about K959 522 from K963 591.
On the other hand, Mzuzu’s monthly basic needs basket declined to K957 844 from K1 million while Zomba remained the least expensive at K844 939, down from K889 802.
Consumers Association of Malawi exective director John Kapito said in an interviewyesterday that the cost of living remains high because of the economic challenges the country is facing compounded by foreign exchange shortages.
He said this has made traders to price their goods and services based on parallel market rates, further increasing household pressures.
Said Kapito: “The current lower prices of food, especially maize has had very little impact on general high cost of living, which explains that other variables beyond maize are key in the lives of Malawians.
“There is need to address these economic challenges facing Malawi for the cost of living to be reduced.”
After months of negotiations, government has revised the minimum wage upwards, with the new rates taking effect on June 1 2026.
While employers and workers were hoping for some relief in the 2025/26 Mid-Year Budget Review, Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha announced new taxes that he said were meant to cushion such low-income earners.
Among others, value added tax rate was increased from 16.5 percent to 17.5 percen while the Malawi Revenue Authority will now be collecting rental income on residential property.
The minister also introduced a 0.05 percent levy on electronic bank transfers as well as a 0.05 percent mobile money transfer levy of 0.05 percent on transactions above K100 000 paid by the sender.
Mwanamvekha justified the new tax measures, saying they were introduced after careful consideration.
