Malawi’s year-on-year inflation rate for October 2024 slightly eased by 1.9 percentage points to 32.4 percent, according to National Statistical Office (NSO) data.
But Consumers Association of Malawi (Cama) believes the figure is misleading because prices of goods and services continue to rise at a faster rate.
In its latest Stats Flash, NSO observed that pressure on food price slowed in October.
Reads the statement in part: “The decline is mainly driven by a slower rate of increase in food prices compared to the same period last year.
“Food inflation now stands at 40.3 percent from 43.5 percent observed last month.”
Non-food prices have registered a slight decline from 21.8 percent to 21.2 percent over the same period, according to NSO.
In an interview yesterday, Cama executive director John Kapito said the current picture on the ground does not reflect NSO’s estimate, adding that there is need to review the formula for computing inflation.
“The current inflation figures do not give a true picture of what is happening economically,” he said.
Kapito said the figures are misleading because the real inflation is felt by the ordinary consumers who are grappling with the high cost of living.
In his presentation at the Economics Association of Malawi annual lakeshore conference in Mangochi on Wednesday, economist Winford Masanjala, quoting Johns Hopkins University professor Steve Hanke, said the country’s inflation figures could be higher than the current NSO estimates. And in its fourth Monetary Policy Statement, the Reserve Bank of Malawi projected that inflation will slow down in the fourth quarter and adjusted downwards projected annual inflation target to 32.5 percent.
