The cost of living for low-income families in Malawi continues to rise, with the Basic Needs Basket (BNB) showing an increase from K938 291 in September to K945 029 in October 2025.
This upward shift reflects growing pressure on households that are already struggling to afford essential goods and services. What makes this development particularly striking is that it occurred during a period when maize price—traditionally the main driver of food inflation—was falling in several major cities.
The decline in maize price, however, was not enough to ease the burden on households because sharp increases in other essential food items and household commodities offset the relief.
One of the major contributors to the rise in the cost of living was the significant increase in vegetable prices. Tomatoes and onions, which are central to daily meal preparation, became more expensive across cities such as Lilongwe, Zomba, and Mzuzu. For instance, tomato prices in Mzuzu increased from K3 022 to K3 832 per kg, while onion prices jumped from K3 479 to K4 492 per kg. These increases have immediate effects on meal costs, especially for households that rely heavily on vegetables as part of their daily diet.
Protein sources also recorded sharp price increases, further worsening nutritional challenges for low-income families. Prices of dry fish varieties such as usipa and mcheni rose substantially, while beef prices in Mzuzu increased from K12 000 to K14 000 per kg. Protein foods are already expensive for many households, and these additional increases reduced affordability even further, pushing more families toward less nutritious, carbohydrate-heavy diets.
Cooking oil prices saw some of the sharpest increases, particularly in Mzuzu where the price of a 2-litre bottle was fetching K14 883. Cooking oil is a daily essential with no practical substitute, meaning households must either spend more or reduce the number of cooked meals. Sugar prices also rose dramatically in Lilongwe, Zomba, and Blantyre, contributing to the overall inflationary trend. Beyond food, essential hygiene products such as Protex soap, Vaseline -Blue Seal, and Clere Lotion became more expensive, adding to the financial strain faced by families.
The cumulative effect of these increases has been particularly harsh on low-income earners. Families are now forced to reduce the quantity and nutritional quality of their meals, often prioritizing food expenditure over critical needs such as healthcare, education, and sanitation.
With wages remaining stagnant and purchasing power eroding, urban households—who depend almost entirely on market purchases—are feeling the heaviest burden. The situation highlights deepening economic vulnerabilities at household level, especially in cities where there are limited opportunities for subsistence farming.
Policy recommendation
Expanding social protection interventions remains one of the most effective and immediate strategies for cushioning Malawian households from rising food prices and the general increase in the cost of living. As inflation shifts beyond maize and increasingly affects vegetables, protein sources, cooking oil, sugar, and essential hygiene products, Malawi’s social protection system must adapt to these changing realities. A stronger and more responsive system will not only protect vulnerable families today but also build long-term resilience against future economic shocks.
One of the most urgent steps is to increase the value of cash transfers to match inflation. Malawi’s current social protection programmes—particularly the Social Cash Transfer Programme—have not adjusted their support levels in line with rising prices. While food and essential household goods have become more expensive, cash transfer amounts have remained stagnant. This has seriously eroded beneficiaries’ purchasing power, making it harder for families to meet basic consumption needs. Updating transfer amounts to reflect the true cost of living would enable households to afford key commodities such as cooking oil, vegetables, protein, and hygiene products. It would also help stabilise nutrition, reduce the need for harmful coping strategies like skipping meals, and prevent families from withdrawing children from school or delaying medical treatment.
Malawi must also make its social protection system more flexible through emergency inflation adjustment mechanisms. These would allow cash transfers or food vouchers to automatically increase when the cost of living rises beyond a specified threshold—such as more than five percent in a single quarter. This approach reduces the need for lengthy administrative procedures and ensures that support remains relevant and adequate during periods of rapid inflation. Automatic adjustments would strengthen household resilience and prevent families from immediately falling into crisis when prices surge.
Another critical measure is the introduction of urban food vouchers. Unlike rural households, urban families depend almost entirely on purchased food and cannot rely on subsistence farming to supplement their diets. This leaves them extremely vulnerable to price increases. Food vouchers—redeemable for essential food items—would directly support those hardest hit by monthly price changes. Such vouchers ensure targeted assistance, minimise leakages, and guarantee that recipients access essential items like cooking oil, sugar, vegetables, and salt. This would ease pressure on already stretched urban household budgets while improving food security for the poorest families.
Scaling up the School Feeding Programme is equally important. The programme has proven to be one of Malawi’s most successful social protection initiatives because it provides immediate nutritional support while reducing household expenditure. A guaranteed meal at school helps relieve financial pressure on families, improves children’s health and learning outcomes, and supports long-term human capital development. Expanding the programme—especially in urban poor communities and food-insecure rural areas—would greatly assist families at a time when cooking oil, vegetables, and other foods have become more expensive. School meals therefore play a critical role in bridging nutritional gaps for children from low-income households.
In addition to short-term financial support, social protection must be linked to long-term livelihood strengthening. This includes providing small business grants, entrepreneurship training, support for backyard gardening and small livestock rearing, and market linkages for community-based horticulture. Integrating livelihood support helps beneficiaries develop sustainable income sources and reduces long-term reliance on cash transfers. As food prices continue to rise, improving household income-generating capacity becomes essential for long-term economic security.
Finally, the government must harmonise and expand targeting criteria to reduce gaps in coverage. Many vulnerable groups—including informal workers, single mothers, urban youth, and elderly individuals without pensions—remain outside the existing social protection system. Improving coordination and ensuring broader coverage in urban and peri-urban areas would allow social protection programmes to reach those who are at greatest risk of falling into poverty due to inflation. Ensuring that no vulnerable household is excluded is vital in preventing deepening inequality.
Expanding social protection interventions is not merely a welfare measure; it is an economic stability strategy. When households are shielded from extreme poverty, they maintain their spending on essential goods, access healthcare, keep children in school, and participate more productively in the economy. Strong social protection systems help prevent malnutrition, reduce household debt, lower school dropout rates, and support long-term economic growth. They also enhance social stability during periods of economic hardship. Given the current inflation trends, strengthening social protection remains one of the most direct, practical, and cost-effective ways to protect families from hunger, insecurity, and worsening poverty.
*Agness Nyirongo is Centre for Social Concern economic governance officer.
