February inflation eases to 23.4%

Malawi’s year-on-year headline inflation rate for February 2016 as measured by the consumer price index (CPI) slowed by 0.1 percentage points to 23.4 percent from 23.5 percent in January 2016, according to figures from the National Statistics Office (NSO).

The slight drop is on account of a decline in prices of non-food items, especially fuel in February.

However, food inflation rose by 0.2 percentage points to 28.6 percent from 28.4 percent due to rising maize prices while urban and rural inflation rates stood at 17.6 percent and 27.1 percent respectively.

Malawi inflation rate remains one of the highest in the 19-member Common Market for East and Southern Africa (Comesa) trade bloc under the harmonised consumer price index (HCPI).

Economics Association of Malawi (Ecama) president Henry Kachaje recently described the slight improvements in inflation rates as not inspiring confidence as “it does not make any impact on the poor’.

Government targets a half-year inflation rate of 14.2 percent by June.