Malawi’s inflation continue to rise

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Malawi hunger food crisis

The country’s rate of inflation made a familiar movement in July as it jumped to 23.5 percent from 22.6 percent in June as measured by the consumer price index (CPI), the National Statistical Office (NSO) says.

Inflation is calculated using CPI – which measures the changes in price level of a basket of goods and services purchased by households – but the statistical office has attributed the current rise in the rate of inflation to the increase in food inflation.

Inflation
Maize prices leading to high inflation

Malawi’s food inflation rose from 29.2 percent in July from 27.7 percent in June, a jump of 1.5 percent.

Nonetheless, the rise will not amuse the suits at Reserve Bank of Malawi since the current inflation is 2.5 percent above the 21 percent annual target the bank set back in January this year.

However, economists in the country says the rise should not surprise anyone since the shortage of Maize in the country is leading to rise in prices of the grain – the price of a 50Kg bag of maize currently costs K13,000.

Director of Malawi Economic Justice Network (Mejn)  Dalitso Kubalsa said the jump in the rate of inflation shows that Malawi is grappling with many challenges and that it is also evidence that things will continue to be difficult in the foreseeable future.

One of the major challenges Malawi is facing is hunger with over 6.5 million Malawians currently in need of food aid.