Cost of living inches up 1.3 percent

Basic needs in cities—Lilongwe, Zomba, Blantyre and Mzuzu inched by 1.3 percent to K104 112 (about $260) for a household of six, indicates the Centre for Social Concern (CfSC) August report.

The report released last week by the Lilongwe faith-based organisation indicates that a household of six in the four cities required an average expenditure of K104 112 in the review month up from K102 797 (about $256) in the previous month.

The report indicates that to meet food requirements—maize, milling, beef, eggs, cooking oil and salt—an average household of six would require K62 398 (about $155).

Notable in the food basket, as indicated by the report, is maize which rose by about 12 percent to K6 625 (about $16) per 50-kg bag.

However, to meet other non food items—charcoal, electricity, water and rentals excluding school fees and transport—the household would require an average expenditure of K41 464 in the review month.

However, regardless of the rise in the basic needs in Malawi’s cities, the National Statistical Office (NSO) said the August national inflation rate dropped to 23.3 percent from 25.2 percent in July apparently raising hopes for higher real incomes.

NSO, as posted on its Malawi Consumer Price Indices dashboard, indicated that the year on year headline inflation for August 2013 dropped by 1.9 percentage point on the month before.

NSO further indicated that the urban and rural rates are at 33.7 percent and 20.6 percent respectively.

Regardless of the decline in the national headline inflation, the price of maize, the country’s staple food, has been increasing as we draw close to the lean period. The inflation is composed of 50.2 percent food and non alcoholics.

Figures released by the Ministry of Agriculture and Food Security show that maize average prices jumped by about 18 percent to K115 per kg in August from K97.70 in July.

The ministry’s data indicates that maize prices have been rising for the past three months selling at an average K85.23 in May, K86.83 in June, and K97.71 per kg in July.