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.