Malawi inflation continues to rise amidst soaring food prices

Malawi’s year-on-year headline inflation rate continued to rise as food prices soared accelerating to 25.5 percent in August from 21.7 percent in July, the National Statistical Office (NSO) said over the weekend

Headline inflation has been on the rise since the exchange rate regime was liberalized, which authorities say, has raised the price of the US dollar by about 70 percent and fueled imported inflation.

The price of fuel went up an average 11 percent last week– the second time in two months. This has increased both food and non food prices which has since triggered widespread strikes.

NSO said during the month of August, food inflation went up by 26 percent compared 2.4 percent recorded during the same period last month.

“Core inflation, has gone up by 25.1 percent compared to 12.4 percent during the same period last year,” says NSO.

Core inflation is also another measure of inflation which excludes certain items that face volatile price movements, notably food and energy

At 25.5 percent, this is the highest inflation has hit in a decade despite efforts by monetary authorities to contain it at 18.4 percent in this calendar year.