Advertisement
Business

Inflation soars to 24.7%, central bank hikes rates

Advertisement

Malawi’s rate of inflation rose by 0.6 percentage points to hit 24.7 percent in October 2015 as rising food prices continued to bite, the Reserve Bank of Malawi has said.

The central bank says food inflation surged from 27.2 percent to 28.30 percent as the impact of the food shortage the country is facing began to appear.

Food is the major contributor to the Malawi consumer price index as it contributes about 52 percent to the CPI.
According to RBM, non food inflation stood 21.4 percent in October.

Advertisement

Analysts have predicted that Malawi’s inflation will continue to rise until March 2016 when the country is expected to harvest again.

Of late, rising inflation has seen the central bank pushing up the rate at which commercial banks borrow money from RBM from 25 to 27 percent, a development which has resulted in the commercial banks hiking lending rates.

Last week, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) chief executive officer, Chancellor Kaferapanjiria, criticised RBM’s way of fighting inflation through hiking of interest rates, saying it was misplaced and was a short-sighted way of address the problems.

Advertisement
Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker