January inflation rate rises to 25.9%, says NSO

Malawi’s year-on-year headline inflation rate for January 2023 has increased by 0.5 percentage points to 25.9 percent on account of a rise in non-food commodities, according to National Statistical Office (NSO) data published yesterday.

During the month under review, non-food inflation rate increased to 25.4 percent from 18.6 percent in December 2022.

This is despite data showing that the food inflation rate declined from 31.3 percent in December 2022 to 30.5 percent in January.

Speaking in an interview yesterday, Consumers Association of Malawi executive director John Kapito said it is not surprising that inflation rate has edged upwards as this is a lean period in the supply of food, particularly maize.

He said: “Maize prices over the last three to four weeks have jumped up by an average of 40 percent. The outlook is mixed at this point.

“However, things will become clearer when we start harvesting in the next two months and as the tobacco marketing season commences in the next two months as well.”

Economist Bond Mtembezeka said yesterday that every consumer, including those that never accepted these high inflation rates, now agree that most Malawians are going through hard times.

He said: “Worse off are those that have no means of incomes while demand for basics, especially food, is growing.

“It is one of the worst economic nightmares for consumers.”

Maize, as part of the food component, has a huge weight at 45.2 percent in the consumer price index, which is an aggregate basket of goods and services for computing inflation. The Reserve Bank of Malawi on Monday said the current inflation level is unconducive to support economic growth, which has since been projected at not more than 2.7 percent in 2022.