BY SIBUSISO MNGADI | CHIEF EDITOR
Eswatini’s inflation rate slowed to 2.3% in December 2025, marking a continued easing in price pressures and offering cautious optimism for farmers grappling with high production costs over the past two seasons, according to the latest Consumer Price Index (CPI) report released by the Central Statistical Office (CSO)
The December inflation figure is lower than the 2.4% recorded in November 2025 and significantly down from 3.9% in December 2024, reflecting a more stable price environment as the country enters the 2025/26 agricultural production cycle
Food Inflation Slows Sharply
Of particular relevance to the farming community, food and non-alcoholic beverage inflation dropped sharply to 0.3%, down from 3.5% a year earlier. This slowdown was driven by price declines in key food categories such as bread and cereals, vegetables, fruit juices, and soft drinks.
For grain and vegetable producers, the trend reflects improved supply conditions, but it also signals tighter margins, especially for smallholder farmers selling into informal markets where prices tend to follow consumer trends closely.
The report shows that vegetable prices declined by 1.7% year-on-year, while bread and cereals recorded a negative annual change of 2.2%, suggesting that producers may face downward pressure on farmgate prices in the coming months.
Input Costs Mixed for Farmers
While food inflation has eased, the picture for agricultural inputs remains mixed. Housing, water, electricity, gas and other utilities rose by 4.1%, continuing to weigh heavily on farming households that rely on irrigation, cold storage, and electricity for value-added activities such as milling and poultry production
Electricity prices alone increased by 6.9% year-on-year, while water supply costs rose by 4.0%, adding pressure on irrigated crop producers and livestock farmers operating feedlots and dairies.
On a more positive note, transport inflation remained low at 0.8%, with fuel prices rising modestly by 1.8% annually, helping to stabilise costs related to input delivery and produce transportation to markets.
What This Means for Farmers
For Eswatini’s farmers, the current inflation environment presents a window for planning and consolidation rather than expansion at all costs. Slower food inflation may benefit consumers, but it underscores the need for farmers to focus on productivity, cost control, and value addition to protect profitability.
The easing of overall inflation also strengthens the case for stable lending conditions, potentially improving access to seasonal finance for crops such as maize, beans, vegetables, and horticultural produce.
However, rising utility costs suggest that investments in water-efficient irrigation, renewable energy solutions, and cooperative infrastructure will remain critical for long-term resilience.
