Prices Still Rising, But Slower — RBM Deputy Governor Explains the Inflation Confusion
Deputy Governor of the Reserve Bank of Malawi (RBM), Kisu Simwaka, has taken to Facebook to clear the air: inflation may be falling, but that doesn’t mean prices are going down.
“People often get it wrong,” Simwaka wrote. “When inflation is declining, it simply means prices are still going up—just not as fast as before.”
Inflation is the speed at which prices increase over time, usually measured over a year. A drop in inflation, he said, doesn’t mean a drop in prices. It only means that prices are rising more slowly than before.
“It’s like easing off the accelerator while still moving forward,” Simwaka explained. “Prices of many items are still climbing, though a few may go down.”
He pointed to recent years where Malawi battled high inflation, driven by natural disasters like floods and droughts that hit maize harvests hard and triggered food price surges.
But now there’s a glimmer of hope.
“Inflation has come down from its peak of 34.3% in September 2024 to 29.2% in April 2025. That’s progress,” he said. “Prices are still rising, but more gently compared to last year.”
Still, Simwaka says the goal is clear: bring inflation into single digits.
“Low and stable inflation is key,” he said. “It protects your money’s value, helps businesses plan better, and boosts long-term economic growth.”
Bottom line? Prices aren’t dropping yet—but the fire is cooling, and that’s a step in the right direction.
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