The Reserve Bank of Malawi has revised upwards the 2024 annual inflation projection to 33.5 percent from 30 percent.
The central bank attributes its decision to elevated food prices.
A statement of the Monetary Policy Committee (MPC) published on Thursday indicates that rising food inflation continues exerting pressure.
Figures in the statement, however, show headline inflation in the second quarter of 2024 averaged 32.8 percent, 0.6 percentage points lower than 33.4 percent in the previous quarter.
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This followed easing in pressure on food inflation, which declined to an average 40.7 percent, having averaged 41.9 percent during the first quarter of 2024.
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“However, the committee observed that within the second quarter of 2024, headline inflation accelerated to 33.3 percent in June 2024 from 32.3 percent in April 2024, reflecting rising food inflation, while non-food inflation remained relatively low and stable at around 22 percent over the same period,” the statement reads.
In a recent interview, Economics Association of Malawi President Bertha Chikadza said rising food inflation continues to pile pressure on headline inflation.
Economist Marvin Banda said food prices are expected to remain elevated as the country is in its lean season.
He called on the government to secure maize from external sources to flood the market.
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“Even though food prices are going to be higher in urban areas, food shortages are expected to ravage the rural areas first and render more Malawians food insecure.
“On the regional front, it is expected that Malawi, like Zambia, will be battling for maize exports from Tanzania which should see prices remain high,” Banda said.
