Inflation Drop Giving Hope

A few days after a record drop in inflation since May 2012 due to the improved food availability in Malawi experts are upbeat that the country’s economy will stabilize.

Market analyst, Chikavu Nyirenda told the media that continued efforts are required to contain the existing pressure and maintain the country trend.

Inflation which reflects a rise in the general level of prices of goods and services in an economy over a period of time has continuously been skyrocketing over the months affecting the buying power in turn.

According to Nyirenda, there is hope following the record drop of inflation form 37 percent to 36.6 percent as reported by the National Statistical Office according to figures for the month of March.

“The Malawi economy now sees stability to some extent as evidenced by the exchange rate slight appreciation compared to the case in the past months and a slight slowdown in the inflation figures,” said Nyirenda.

He expressed optimism for a continued drop in the inflation following improved food availability in the country.

Until recently, Malawi inflation has continued to skyrocket, recording the highest figure of about 37 percent in 10 years.

The inflation has also been way above that of other SADC counterparts for some time now.

Among others the inflation rise in Malawi has been prompted by a continued rise in the price of fuel. This has in turn also resulted into a continued hike in other basic commodities on the market.