Malawi inflation hits single digits for the first time in 6 years: In line with expectations
Malawi inflation rate tapped a single digit to 9.93 percent in May, the central bank said, the first time it has dropped into single digits since 2010.
According to NSO, the current inflation rate indicates a decline of 0.9 percent from the month of July, 2017.
The urban and rural rates stand at 8.9 percent and 9.8 percent respectively. Overall, food inflation stands at 6.2 percent from 7.4 percent in July 2017 while non-food inflation stands at 12.2 percent from 12.7 percent in July 2017.
This year, Malawi produced more than 30 percent surplus in maize owing to good climatic conditions after two successive years of low output due to drought and floods.
NSO figures released show that August inflation rate has eased by 0.9 percentage points from July’s 10.2 percent.
During the same period last year, inflation was at 22.8 percent, and this shows that prices of goods and services have increased at a much more reduced rate.
Reads the NSO Stats Flash: “The urban and rural rates stand at 8.9 percent and 9.8 percent , respectively. Overall, food inflation stands at 6.2 percent from 7.4 percent in July 2017 while non-food inflation stands at 12.2 percent from 12.7 percent in July 2017.”
The dropping of inflation to single digit coincides with the stabilization of Kwacha which, according to NICO Asset Managers report, has relatively stabilized e in August this year depreciating marginally by 0.21 percent against the US Dollar.
The report attributed the Kwacha stabilization to good economic prospects and increased level of foreign exchange reserves may cushion the magnitude of depreciation.
It reveals that the country’s forex reserves remained above the minimum three months. As of 31 August 2017, total forex reserves stood at US$1,027.33 million or 4.91 months of import cover, compared to 4.54 months of import cover at the same time last year.
Meanwhile, experts have warned that the single-digit inflation does not mean prices of commodities are going down or that the economy has recovered, but that the rate at which the prices rose has slowed down.
They also argue that current inflation rate means that some room has been created for other economic factors such as interest rates and the exchange rate to improve,” commented Khanje in his assessment.
Follow and Subscribe Nyasa TV :
Congrats APM and your Cabinet a job well done it’s really great and amazing we hope you will keep on turnning our economy around,, that even we at the ground we should enjoy. I know all those who do not wish you well are feeling shy ….. they can’t even appreciate, but just forget about them keep on moving on with boldness everything is possible with God. Come 2019 am sure you will take us again to 2024, the LORD Almight has already prepared a way for you. He knows the tougher times you have gone through how you have… Read more »
Well done . Congratulations.
You have taken money out the economy to really get these single digit inflation rates .
We thank god for good rains last harvest and pray for the same this year.
But the economy is in the biggest mess it’s ever been since tri party reign.
The real decline in inflation was supposed to be felt by producers and the poor farmer in the village. In a country where the cost of production is high, due to high electricity tariffs, high farm input cost.
The inflation decrease is at the expense of a poor farmer no wonder we can not sustain
Government are not paying debts owed to private sector, Parastatals, rentals medicines everywhere you go there are arrears owed by government to the private sector. This is not success this is fake , if governments wants true reflection of economy should start paying arrears owed. Goodall wake up and start paying people what is owed
This is good news
Thats good news lets us give our government a big high 5 don’t just criticise the government just for the sake it .
Ndine mlimi ndagulitsa matumba 50 a chimanga koma ndikulephera kugula feteleza wokonzekela ulimi wa chaka chamawa. Makasu mitengo yakwela, mabasi mitengo yakwela, sopo, mchere mitengo sikutsika. Kodi inflation imayenda bwanji? Alimife kutsika kwa inflation kumatithandiza bwanji? Phunzitseni.