Household expenditure in June increased by an average 6.6 percent to K880 053, a situation the Centre for Social Concern (CfSC) attributes to rising maize prices and transport costs.
CfCS data shows that last month, the average cost of living for a household of six in the four cities of Lilongwe, Blantyre, Zomba and Mzuzu was pegged at K825 250.
During the review month, a 50 kilogramme (kg) bag of maize was fetching K60 000, up from K51 000 the previous month, according to CfSC.
Similarly, Blantyre saw a 10.8 percent increase, with maize prices rising from K49 643 to K55 000.
The price of usipa, a vital and affordable protein source for many low-income families, rose by 22.6 percent in Lilongwe and by an alarming 33.3 percent in Mzuzu.
With the minimum wage at K120 000 per month, the current cost of living covers less than 15 percent.
In a written response yesterday, CfSC economic governance officer Agnes Nyirongo observed that poor households typically allocate between 60 percent and 70 percent of their income to food purchases, meaning that any surge in staple food prices rapidly destabilises their financial situation
She said: “Households are being forced to make unbearable choices: skipping meals, delaying medical care, pulling children out of school, or sacrificing transportation in order to stretch limited resources.”
Nyirongo added that the unavailability of fuel in many parts of the country is now a serious challenge with long queues, delayed deliveries and limited mobility leading to increased transport costs.
“Traders are forced to factor these difficulties into their pricing, while workers and vendors are sometimes unable to travel to work, further reducing household income and market productivity,” she said.
Grinold Kapiri, a security guard and father of four, says even though his income has increased to K120 000 following the recent minimum wage revision, the same has not translated at home.
“Prices are rising every day and I am failing to keep up. My wife does some piece works but its still not enough. We are forced to skip meals,” he said.
In May this year, Ministry of Labour increased the minimum wage by 40 percent from K90 000 to K126 000 per month while the rate for domestic workers increased from K52 000 to K72 800 per month and that of the micro-enterprises has been increased from K75 000 to K105 000 per month.
Malawi Congress of Trade Union was lobbying for 100 percent increase in the face of rising cost of living, with the president observing that “people are struggling to provide for their families”.
However, Employers Consultative Association of Malawi proposed that due to the unstable economy, government and other stakeholders should be reviewing the minimum wage annually rather than waiting for three years as stipulated in the Employment Act.
