Rising commodity prices to worsen poverty—Centre
Centre for Social Concern (CfSC) says the rising prices of goods and services will push the majority of low-income earners into abject poverty.
In an interview on Wednesday, CfSC economic governance programme officer Bernard Mphepo observed that the increasing commodity prices will make it difficult for income earners to afford basic needs.
He said: “The cost of living in July this year was K207 000 per month for a minimum family of six, this is higher than in June 2020 when the cost of living was K164 000.
“Sadly, the cost of living has been increasing during harvesting period unlike in the previous years when the cost living declined from April to September. However, there is no increase in minimum wage despite an increase in the cost of living and the depreciation of the kwacha.”
Mphepo said the K50 000 as a minimum wage is on the lower side to support the majority of Malawians to move out of poverty.
In the 2020/22 National Budget, government maintained the minimum wage at K50 000.
According to the 2020 Malawi Poverty Report, poverty levels declined from 51.5 percent in 2017 to 50.7 in 2020, representing a 0.8 percent decline.
This means that over half of the country’s population is poor.
Minister of Finance Felix Mlusu is on record as having said there are more competing needs in the budget but the resource envelope remains thin to meet people’s demands; hence, called for patience as the country is going through turbulent economic times.
On Sunday, the Malawi Energy Regulatory Authority announced an increase in fuel prices by 22.8 percent.
Petrol is now selling at K1 150 from K899.20, representing a 27.89 percent increase. Diesel price increased by 24.72 percent, selling at K1 220 from K898 while paraffin price increased by 15.79 percent to be selling at K833.20 from K719.60.
Government and Consumers Association of Malawi have since cautioned traders against increasing prices beyond limit to scam consumers in the country amid rising fuel prices.
