Inflation eases to 8.7%


Headline inflation eased in July 2021to 8.7 percent from 9.1 percent recorded in June, figures from the National Statistical Office (NSO) show.

This is on the account of a decrease in food inflation, which was seen at 10.3 percent from 11.1 percent in June. Non-food inflation was static at 7.2 percent.

The figures further show that year-on-year, the urban inflation rate for July 2021 is at 6.0 percent and urban food and non-food inflation rates were seen at 7.4 percent and 5.2 percent, respectively.


“In the non-food category, the three categories with the highest year-on-year inflation for July 2021 are transportation, housing, water and electricity and furnishing and household at 11.2 percent, 7.8 percent and 7.5 percent, respectively,” reads a statement from NSO.

Economist from the Malawi University of Business and Applied Sciences Betchani Tchereni attributed the ease in food inflation to a rise in food availability on the market as Malawi has been reported to have posted a bumper yield of maize this year.

He says headline inflation may continue with a downward spiral in the short to medium terms but it will peak up at the commencement of the next agricultural production season.


“It will be good if authorities make sure that the inflation rate remain in single digit but it should not be politically motivated because, sometimes, drops in inflation mean the economy is not active,” he said.

When presenting the 2020/21 National Budget to Parliament, Minister of Finance Felix Mlusu said the government would thrive towards maintaining inflation rate with a single digit band.

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