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Inflation eases to 8.5 percent

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Inflation rate for June 2020 went down by 0.2 percentage points to 8.5 percent from 8.7 percent during the preceding month, a development economic commentators say was expected.

Monetary authorities say this also signifies that the country is on course to achieving a five percent inflation rate target end of first quarter of 2021.

Figures from the national statistical office show that the June 2020 headline inflation is 0.5 percentage points lower than the 9.0-rate recorded during same time last year.

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During the month under review, food inflation rate stood at -0.8 percent compared to -3.2 percent in May, 2020 while non-food inflation is at 0.2 percent compared to 0.1 percent recorded may, 2020.

This entails that average prices of goods and services rose at a slower pace during the month under review.

In the past three months, prices of maize, Malawi’s staple grain, has been relatively stable, as supply surged.

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As part of the food component, traditionally maize impacts the country’s economy given that it constitutes 45.2 percent in the consumer price index-an aggregate basket of goods and services for computing inflation.

Reserve Bank of Malawi (RBM) maintained a five percent inflation target to be attained by end of first quarter of 2021, despite a possibility of attaining the mark being threatened by possible effects of Covid-19 pandemic.

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