Inflation rate dropped to 8.9% in May
Malawi’s annual inflation rate eased by 0.2 percentage points to 8.9 percent in May 2019 from 9.1 percent the previous month, the National Statistical Office (NSO) said yesterday.
The slight drop was a result of a drop in food inflation, which eased to 13 percent from 13.8 percent while non-food prices ticked up to 5.7 percent from 5.4 percent, NSO said.
“[Monthly] food inflation rate is at -2.4 percent compared to -8.4 percent recorded in April, 2019 while non-food inflation rate stands at 0.5 percent compared to 0.2 percent recorded in April 2019,” reads NSO Stats Flash.
On the other hand, urban month-to-month inflation rate is at 0.1 percent while urban food and non-food inflation rates stand at -0.6 and 0.5 percent, respectively.
In its Monthly Economic Report for May 2019, Nico Asset Managers said inflation rate is expected to ease to around eight percent at the end of 2019 and gradually converge to five over the medium-term.
“These estimates are predicated upon the continued softening of global oil prices, favourable rains and higher agricultural output and controlled government spending.
However, adverse weather, pest-related disruptions to crop production and a sharper than expected depreciation of the kwacha, an increase in the global oil prices pose major upside risks and may cause the inflation rate to edge up,” said the investment advisory firm in the report.
Malawi’s year-on-year inflation rate has been in single digit lane since last year.
