The average basic needs basket(BNB) in cities—Lilongwe, Zomba, Blantyre and Mzuzu—has risen by 13.2 percent from K90 504 in January 2013 to K102 461 in June, indicates Centre for Social Concern (CfSC) mid-year report released on Tuesday.
The report indicates that the basic needs basket (BNB) in June averaged K113 324 in Lilongwe, K88 412 in Zomba, K109 992 in Blantyre and K98 117 in Mzuzu.
The report further indicates that in January 2013, the BNB in Lilongwe was at K98 056, Zomba K83 599, Blantyre K93 455 and Mzuzu K86 904.
Commenting on the BNB trend in a press release, CfSC social conditions research programme officer Alex Nkosi said the cost of goods and services in society is critical in shaping people’s general welfare.
“Cost of living as it influences how households and individuals relate to education, health, food, shelter, energy, water and sanitation, even agricultural production. Cost of living is a broad quality of life indicator—as a primary determinant of access to food and education.
“Improvements in the Malawi economy should largely be judged by the affordability of basic needs to average households.
Attempts to measure progress in nation through abstract notions such as GDP tell little about how people are truly living,” said Nkosi.
He added that claims of improvements in the Malawi economy should be based on information that shows an increase in quality and access of health care and education, more nutritious food, a decline in the number of street children, and workers earning adequate incomes.
BNB totals the food and the essential non-food baskets and represents the urban poverty line.
The June 2013 BNB report indicates that the food basket—the ultra poor threshold—averaged K61 123 up from K56 733 in May. The non-food basket rose to K41 338 in June from K39 522 in May.
Notable in the food basket, in June, a 50 kg bag of maize averaged K4 987 in the four cities up from K4 753 in May. In Lilongwe a bag of maize rose to K5 357 from K5 179 in May, while in Zomba maize fell to K4 108 from K4 333. In the commercial city of Blantyre a bag was selling at K5 083 up from K4 500 in May while in Mzuzu the staple was selling at K5 400 up from K5 000.
However, the June inflation rate dropped by 3.1 percentage points to 27.9 percent, from 31 percent in May, according to the National Statistical Office (NSO). NSO said the urban and rural rates stands at 37.1 percent in June down from 39.4 in May while rural stands at 26.5 percent in June down from 29.6 percent in May.
