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MBABANE – A rapid decline in Eswatini’s inflation rate is raising concern among economists.

They warn that the trend may reflect weakening demand and growing structural pressures within the economy rather than improved stability.

Inasmuch as falling inflation can signal easing price pressures, it may also point to reduced purchasing power among households, market inefficiencies and external shocks, including global supply chain disruptions and oil price volatility, all of which continue to weigh on economic activity.

The Senior Policy Advisor: Economic and Social Affairs at the Southern African Research Foundation for Economic Development (SARFED), Dr George Choongwa, cautions that the country’s recorded month-on-month inflation rate of -0.1 per cent for March 2026, following a similar trend in February, is not a sign of relief, but rather an early indication of weakening demand and fragile economic conditions.

The commentary comes on the back of the latest Consumer Price Index (CPI) report issued by the Ministry of Economic Planning and Development, which shows inflation continuing on a downward trajectory after peaking at nearly 7 per cent in 2022.

Eswatini’s inflation rate continued its downward trajectory in March 2026 as it slowed to 1.6 per cent, down from 1.9 per cent in February 2026 and significantly lower than 3.8 per cent recorded in March 2025.

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Senior Policy Advisor: Economic and Social Affairs at the Southern African Research Foundation for Economic Development (SARFED), Dr. George Choongwa.