By Benadetta Chiwanda Mia:
Headline inflation inched up, albeit slightly, in August 2024 to 33.9 percent, National Statistical Office (NSO) figures show.
Month-on-month, the inflation—the rate at which commodity prices change at a given period in an economy—went up by 0.2 percentage points from 33.7 percent recorded in July.
In its Consumer Price Index released on Monday, NSO highlights a rise in the food inflation rate to 42 percent in August 2024 from 41.9 percent in July.
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Non-food inflation increased to 22.7 percent from 22.4 percent.
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According to the statistics, the national month-to-month inflation rate for August 2024 stands at 2.0 percent. Food inflation for the month is at 2.3 percent while non-food inflation is 1.4 percent.
The urban month-to-month inflation rate is at 1.8 percent. Urban food and non-food inflation rates stand at 2.4 percent and 1.0 percent, respectively. The rural month-to-month inflation rate is at 2.1 percent.
Rural food and non-food inflation rates stand at 2.3 percent and 1.7 percent, respectively.
Inflation has remained on an upwards spiral for a greater part of the year largely driven by rising food prices and other exogenous shocks.
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Consumers have been feeling the pinch as the cost of living has also remained elevated.
Consumers Association of Malawi Executive Director John Kapito predicts continued rocketing of commodity prices.
“This means more difficulties and a harder life for the consumer,” Kapito said.
He, however, expressed optimism that with a recent move by the government to procure maize worth K21.8 billion in the 2024-25 financial year, inflation pressure would ease.
But he cautioned the government against insatiable appetite for borrowing, which continues to pile pressure in the fiscal space.
