Inflation rate drops to 15.8%

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The inflation rate has moved down to 15.8 percent from February’s 16.1 percent, the National Statistical Office (NSO) announced on Wednesday.

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April


The downward trends in the inflation rate means Malawians will be paying 0.3percentage points less on goods and services.


The trend is largely attributed to the decrease in the price of maize which, as part of the food inflation component, has a huge weight in the consumer price index (CPI)- an aggregate basket of goods and services NSO uses to compute the inflation rate at 50.1percent.


NSO said in a statement that the drop in inflation is largely on account of decrease in food inflation which has eased to 17percent in March from 17.5 percent in February.


Said NSO’s statement in part: “The urban and rural rates stand at 13.0 percent and 18.0 percent, respectively.


The slight drop means that prices of goods and services are softer in urban areas as compared to rural areas.


Maize prices continue to drop with a 50 kilogramme (kg) bag now selling as low as 3500 in some areas.


During the same period last year, inflation rate stood at 22.1 percent and this means that prices are softer this year that the same period last year.


Recently, the Economic Intelligent Unit (EIU) had projected Malawi’s inflation to fall to a single digit early 2018.

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