Kapito laughs off 1 % Malawi inflation drop
Consumers Association of Malawi executive director John Kapito has laughed off reports that inflation rate has dropped by one per cent.
The central bank, the Reserve Bank of Malawi has announced the drop in inflation from 24 per cent to 23 per cent.
“That is funny. That is childish,” said the CAMA boss.
“ Is it a statistical inflation rate or just political,” Kapito said.
He said the situation on the ground remains pathetic as ordinary poor Malawians are struggling to make ends meet because of the high cost of living.
Malawi is reeling from the worst economy in recent memory coupled by acute shortages of the stapple food, maize.
Kapito dismissed the Reserve Bank inflation figures as “cooked up” as they are not reflecting the situation on the ground.
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Reserve Bank did not make this announcement. Inflation figures are announced by the National Statistical Office headquartered in Zomba. Just a point of order.
The problem is kwacha depreciation, chuka introduced new measures which is not helpiing the kwacha to stabilise, 0.25% depreciation limit and 0.25% appreciation limit.
These limits must be removed it should be free floating completely as kwacha should be allowed to appreciate without any limits, the limit should only be for depreciation if needed,
for appreciation it should be unlimited. Then only kwacha can stablisie and rebound. Goodall take note this can help and transform Malawi kwacha to a more stable currency
Chukas alola ma epxorters amzungu akhoza ku sunga ma dollar yatcha aka gulitse fodya ndi ma legumes, 100% Poyamba ma exporter amasintha 40% ma dollar mu kwacha zinthu anali bwino. Achuka ma policy yatha silibwino ayamba so ma exporters asinta 40% pompo aka gulitsa ma export yatcha. KWacha apeza nso mphamvu.
O……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. @ 3, you dont need an MSc or a PhD in Economics or Finance to realise that what Kapito is saying is true . . . Even in economics, which you are boasting much questionable knowledge about; there is emperical analysis of theory – econometrics. Thus, though one variable may have an impact on another, the magnitude and statistical significance by which that one variables impacts on the other, is much more important than just the mere fact that the variables relate to each other. Corollary, the 1 percentage point deviation of 23% from 24% inflation is not statistically… Read more »
Kapital does not realize he is the one that is playing politics.
1% drop in inflation is a big deal. Unfortunately Malawians are a get rich quick mentality individuals, so everything must be gig.
what an idiot.
@ 3. What you are talking about is more suitable for a thesis; something academic and too theoretical. What is empirical is that Malawi is going through harshest socioeconomic turmoil. You must be one of the simpletons who are ruling this country by default.
Goodall Goodall thats my man! work hard guys, even rome wasnt built in a day.
I read with keen interest before loughing out loud at a comment by Dr. Neutral Citizen.
Your message is very succinct. 1%age drop in inflation is an indicator that Malawi economy has now started doing well. Instead of loughing at that Mr Kapito should have been clapping hands just as wakutumbikika wadada Gondwe predicted last year.
Iwe..Dr Neutral Citizen……dont make a fool of kapito….and dont over rate yourself to comprehend economic indicators….kapito is right…1 percent drop is too decimal to have any positive impact on people’s lives…theoretically govt may claim is economic is going positive direction but too early to tell even on that one.Any claim of inflation drop that can not be felt by ordinary Malawi is fuzzy economics
Its now clear that many people do not understand economics including this Kapito. If you know what the word inflation means then you celebrate upon hearing that it has dropped even before getting the %. A drop alone indicates the direction that our economy is taking. The percentage indicates the extent. Just as it is in physics, velocity is not just defined by the speed, but also the direction. High speed in a wrong direction yields negative results than slow speed in a right direction. I know some think that speed is the same as velocity and no wonder you… Read more »