‘Cost of living stable’
The cost of living has stabilised in the country’s three major cities, largely buoyed by increased supply of most food items and stable prices of food items and non-food items, data from a social welfare monitoring body shows.
Figures compiled by faith-based organisation, Centre for Social Concern (CfSC), show that the cost of living between January 2018 and January 2019 has been stable at around K180 000 and K190 000 for a family of six.
According to the CfSC Basic Needs Basket (BNB) report for January, cost of living, however, increased to K194 483 in January from K190 543 recorded in the previous month.
But in practical terms, this means that Malawians are having less pressure to access their basic needs as stable prices give the consumer a leeway to plan ahead.
Meanwhile, experts are forecasting a drop in the cost of goods and services in the short to medium-term largely due to the improvements registered in the economy and the projected increase in crop yield.
University of Malawi’s Chancellor College economics professor Ben Kaluwa, in an interview, noted that there are some factors of production that have helped to stabilise the cost of living.
He said there are some variables that are helping to stabilise cost of living, adding that the country is better off now than two years ago because prices are stable.
“Domestic prices which ideally impact on the cost of living performed favourably in the recent past and are projected to continue registering improved performance.
“Prices for fuel, for example, and maize have not risen to surprising levels, hence the movements these have helped ease basic necessities such as travel and house rentals and in the end this stabilised the cost of living,” said Kaluwa.
On his part, Consumers Association of Malawi (Cama) executive director John Kapito said the figures represent fairness, highlighting that with stable prices of goods and services, consumers find it easy plan for their expenditure and meet their daily requirements.
“We have indeed noted that the levels of cost of living have been within manageable levels, a development which is ideal in an economy and for a consumer.
“Presently, hopes are high that with current economic environment pointing to more positives, we are certain to see the trend continuing or even improving for the better,” he said.
Meanwhile, Malawi’s inflation continues to spiral downwards with the figure hitting 8.8 percent in January, a trend economists have argued is favourable as it will help bolster confidence in the economy.
