February inflation drops to 24.6%
Malawi’s February 2014 inflation rate as measured by the Consumer Price Index (CPI) dropped by 1.3 percentage points to 24.6 percent on a year-on-year basis, according to the latest National Statistical Office (NSO) stats flash released this week.
The inflation rate, a measure of how purchasing power gets corroded, indicates that compared to February 2013 incomes have shed off about 25 percent.
NSO has further indicated that the urban and rural rates stand at 34.4 percent and 20 percent dropping from 37.2 percent while the and 24.4 percent respectively.
Recently, the Reserve Bank of Malawi (RBM) noted that inflation was expected to peak—to reach a maximum—at 25.6 percent in February largely due to rising food prices and lagged impact of the kwacha.
But the RBM which has been implementing a tight policy to rein in inflation noted that after peaking in February, inflation is expected to begin decelerating in March as a result of the expected seasonal appreciation of the kwacha and improvements in the food supply situation.
Looking ahead the International Monetary Fund (IMF), expects end-2014 inflation to drop to 9.7 percent while the annual average is projected at 15.1 percent.
