Malawi On The Move: Inflation Rate Goes Further Down To 7.1%

President Mutharika: His sound economic management policies have helped to tame inflation
The positive trend of the Malawi inflation continues as the rate has gone further down to 7.1 percent for December 2017 from 7.7 percent in November 2017

Malawi started registering single digit inflation in August 2017 when the rate ticked down to 9.3 percent from 10.3 percent.

That achievement came 6 years from the last time Malawi economy chalked single digit inflation during late Bingu wa Mutharika’s time.

From August 2017, the rate has kept slowing down every month, defying some analysts who predicted that the inflation would not stay single digit as Malawi entered lean period.

Between September and February, inflation tend to rise due to a number of factors. Tobacco sales will have closed, food supply reduces and spending on agriculture inputs commences.

However the economy is proving it is no longer seasonal as it is weathering the lean season confidently.

That the single digit was attained last year was even remarkable as economic analysts had earlier forecast that Malawi could only register single digit inflation mid this year.

At the time President Peter Mutharika took over government in May 2014, inflation was around 24 percent and it was one of the highest in COMESA region.

Already battered by Joyce Banda’s Cashgate, the economy suffered further from devastating floods in 2015 and then severe drought in 2016.

The two natural disasters affected agriculture, the mainstay of Malawi’s economy.

But government remained steadfast on its sound economic management policies which have helped to tame inflation.

With the help of a good harvest last season, the raft of prudent financial management measures introduced and implemented by the Mutharika administration have restored confidence in the economy.

The economy is now on the path of recovery, experts agree.

The continued downward trend in inflation means prices of goods for consumers will remain stable.

High inflation rate leads to high cost of living, high cost of doing business and high cost of borrowing money for investment – all of which negatively affect the economy.

35 Responses to "Malawi On The Move: Inflation Rate Goes Further Down To 7.1%"

  1. Synet Chawinga   January 17, 2018 at 5:08 am

    If the economy is doing well, why is it we are still the poorest country, Why is it pple are still suffering. Why majority of the youths are still unemployed? Why are we still stuck in poverty. Economy yanuyi ndiya pa pepala pa ground u cant show kuti zinthu zili bwino. Hospitals are not fully funded, technical colleges are not fully funded wina nkumati economy ikuenda bwino muzinamizana nokha macadet.

    Reply
  2. Henry Chiwamila   January 17, 2018 at 5:16 am

    Politics sizatheka

    Reply
  3. George Mthini   January 17, 2018 at 5:20 am

    Tsono enewa kukamwako bwanji kkkk amadya batata yatentha bwanji?

    Reply
  4. Chris Chawango   January 17, 2018 at 7:29 am

    Malonda abwino anthu amathamangilako this is anthu ambili akuthamangila Ku Rebranded MCP chifukwa nde chipani chokhacho chili ndi mayankho omwe mavuto alipowa a Malawi adzawachotsele

    Reply
  5. Zenus Ungapake Malama   January 17, 2018 at 9:59 am

    But know this, a people in a village doesn’t know what an inflation means, he just know how things are going on the ground. So do not be deceived with this, maybe also even you yourself writing this you don’t know what inflation is.

    Reply
    • Ismail Jussab   January 17, 2018 at 11:38 am

      Inflation. Have you compared the price of a bag of maize this lean period and that of last year? From a lay man’s point of view, you will notice that the price for a bag maize this January is much cheaper than it was same time last year. So in a sense the price of a food commodity as changed gone down. And it’s easy for a villager to understand this logic,hence the fall of inflation.

      Reply
    • Clement Wokondeledwa Sellenje   January 17, 2018 at 1:10 pm

      A Zenus musawonetserepo umbuli wanu apa its simple and straight forward

      Reply
    • Zenus Ungapake Malama   January 17, 2018 at 1:10 pm

      Yes you have gone to school and you know what is all about the inflation is. But known this, the fall fall of of inflation has also an impact to the farmers who depends on selling theit produce to aquire farm inputs. So it’s good for only buying organisation not for selling organisation like a mere farmer, So it could have been better for the Government to monitor price for the betterNess to the farmer whose depends on selling to have something in their hands, then do you thing there is any farmer this year benefiting from their produce?

      Reply
    • Clement Wokondeledwa Sellenje   January 17, 2018 at 1:14 pm

      Kodi mukufuna zinthu kwa ma consumers zitsike kapena ayi? business imakhala ndi season thus why anthu amatha kukhala ndichimanga kapena mbewu zina kuti azagulitse when the prices have gone up! this time around ndizovuta unless kumbewu zina not chimanga because the inflation is down, mynd u mitengo yazinthu imakhala yotsika kapena kukwera ndimmene inflation yadzikolo ilili

      Reply
    • Clement Wokondeledwa Sellenje   January 17, 2018 at 1:17 pm

      unafunsidwa funso ndi Ismail kuti last year in January what was the price of maize and the inflation comparing to this year?

      Reply
    • Clement Wokondeledwa Sellenje   January 17, 2018 at 1:20 pm

      panopa ndizovutilapo kuti mlimi atha kupindula ndi ulimi wachimanga unless atalima zinthu zina zoti agulitse, why supply yachimanga ndiyochuluka kwambiri mdziko muno and the markets are all over flooded with maize so is the scenarior of DEMAND and SUPPLY of

      Reply
    • Zenus Ungapake Malama   January 17, 2018 at 1:20 pm

      I know what he was saying, and that’s y no figures appeared kkkk yakubaya

      Reply

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