Economists and a money market analyst have urged monetary authorities to ensure that they tame the continued rising inflation rate.
They spoke in an interview yesterday in the context of Malawi’s year-on-year headline inflation rate for October 2021, which has increased by 0.9 percentage points to 9.8 percent from 8.9 percent the previous month.
Business News calculations show that in the 10 months to October, Malawi’s inflation rate has averaged 8.8 percent, a 0.1 percentage points higher than the 8.9 percentage attained during the same period last year.
The Reserve Bank of Malawi (RBM) has put this year’s average inflation rate at 9.1 percent.
Malawi’s inflation has been on the rise since July this year when it peaked at 8.7 percent.
In an interview yesterday, Alliance Capital Limited research manager Bond Mtembezeka said Malawians should expect inflation to continue rising because prices of utilities have also gone up recently.
“Malawians should, therefore, brace for tough times ahead,” he said.
Catholic University economics lecturer Hopkins Kawaye blamed the rising costs of prices on taxes, depreciation of the kwacha and global supply chain disruptions.
“In Malawi, we use road to transport most of our goods and any rise could impact prices,” he said.
Malawi University of Business and Applied Science associate economics professor Betchani Tchereni said while the rising prices could push further inflation projection for the year, putting the single digit inflation dream is in jeopardy.
Earlier this month, RBM revised upwards the 2021 and 2022 inflation rate projection on account of rising fuel prices, increasing maize prices and global supply chain disruptions.