Price spikes hit consumers
Rising prices of goods continue putting pressure on cost of living, a development Centre for Social Concern (CfSC) says needs immediate and strategic interventions to address.
Published CfSC data shows that following rising prices in essential commodities, including maize and tomatoes, cost of living has increased by 2.1 percent to K510 534 from K500 154 recorded the previous month.
According to the centre, maize prices increased by an average of 30 percent during the month under review from K34 286 to K42 857 per 50 kilogramme of maize while tomato prices rose by an average of 15.75 percent.
In a written response on Wednesday, CfSC economic governance officer Agnes Nyirongo said the increase in living costs poses “severe” challenges for low-income households in Malawi, who spend a substantial portion of their income on essential commodities.
She said: “For low-income earners, who allocate a large percentage of their earnings to food, these price hikes result in diminished purchasing power. As prices for staple foods increase, households must allocate more of their limited resources to cover basic needs.
“This shift often comes at the expense of other critical areas, such as healthcare, education, and savings. The increased financial pressure exacerbates existing economic vulnerabilities and heightens the risk of food insecurity, placing additional strain on already struggling families.”
Nyirongo urged government to implement targeted subsidies on the cost of essential goods to provide immediate relief and foster long-term economic stability through, enhance food security, implement price monitoring and regulation and expand social protection programmes.
She also urged consumers to ex e r c i s e r e s p o n s i b l e consumption to help manage household expenses and promote sustainability.
Meanwhile, Malawi’s year-on-year inflation rate for June 2024 has increased by 0.6 percentage points to 33.3 percent due to rising food prices, according to published National Statistical Office figures.
The rising inflation entails that consumers have less incentive to spend money in the short-term, resulting in less economic activity.
Inflation, a general increase in prices and fall in the purchasing value of money, has been on the rise in recent months following increasing maize prices, despite Malawi being in the harvest period.
Consumers Association of Malawi executive director John Kapito said consumers cannot survive with the continued rising cost of living.
Kapito predicted tough times ahead for consumers and enterprises, adding that the situation will worsen in the coming months. Meanwhile, the Reserve Bank of Malawi (RBM) has said given the current economic environment, it will stick to a tight monetary policy that will translate into high policy rate and subsequent increased cost of borrowing.
