Malawi inflation rate slow down again but prices rising
Malawi’s inflation rate has dropped further to 15.8% from 16.1%, according to Nico Assets managers.
The inflation rate hovered at 21.5% in May 2016 and rose as high as 23.5% in July 2016.
However, as the inflation —a monster that eats into the majority of people’s disposable income—keeps on dropping, the prices of essential commodities keep on rising.
Prices of sugar, cooking oil and other basic needs have sharply gone up in most shops.
Some economists are attributing the drop in inflation to the bumper maize harvest this year and the stability of fuel prices, factors infamous for pushing up inflation. Some Malawians have however taken up in social media questioning the authenticity of the figures following the sharp in rise of commodities including basic commodities like soap.
Inflation is the rising price of goods and services over time.
The inflation rate is the percent increase or decrease of prices during a specified period. It’s usually over a month or a year.
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Inflation at 15.8% is pretty high. I wonder why the cost of imported goods are still going up so sharply while the exchange rate has been pretty stable. Someone somewhere is making money at the expense of ordinary Malawians and somehow the market isn’t competitive enough even though we have different supermarkets. Perhaps the suppliers are the same or we have cartels among supemarkets and also hardware stores. Malawi’s economy is controlled by a relatively small community who all know each other and fix prices. Malawian government must make it easier for new players to enter the market and protect… Read more »
Malawians are paying the price of allowing free market economy take its root in the country at a time its economy was not yet strong enough to swing with that tide. For poor people and those in the middle income group, a controlled economy offered a much better economic environment. Memories are fresh when one used to buy bread at K 3.40; Lifebuoy or Sunlight soap at 15 tambala; and fertiliser at K 54.00 for a 50kg bag. Here we are. Citizens will bury themselves deep in corruption, fraud, abuse of office; and flouting tender procedures in order to make… Read more »