Malawi inflation rate jumps to 22.2 percent
Malawi’s year-on-year headline inflation rate for the month of October, 2013 has accelerated to 22.2 percent which represents a 0.5 percentage point increase on from the previous month, the National Statistical Office (NSO) said Thursday.
From March this year, inflation-the rate at which the general levels of prices of gods and services rises-has been on the downward spiral thanks to the availability of cereals coupled with the tight monetary policy by Reserve Bank of Malawi (RBM).
Thus, the reported increase in the rate of inflation at the moment, is no sweet news to consumers in the country as their disposable income-money available for spending and saving after income taxes have been deducted-would relatively buy less basic commodities than before.
According to NSO, urban and rural rates stand at 31.6 percent and 17.5 percent respectively.
RBM Governor Charles Chuka said on Wednesday during a news conference in Lilongwe organised by the International Monetary Fund (IMF) that the central bank will move towards tightening monetary policy in the wake of aid freeze.
He said given the prevailing high levels of inflation, the bank will continue with its tight monetary policy stance until overall inflation is brought down to single digits.
