Food basket cuts cost of living by 3%

Basic cost of living in Malawi’s four cities of Lilongwe, Zomba, Blantyre and Mzuzu dropped by an average three percent to K116 508 in March compared to the previous month, following another drop in February.

The Center for Social Concern (CfSC) March basic needs basket (BNB) released this week indicates that the total basket dropped due to a fall in the food basket, a component of the necessities by about 4.7 percent.

However, according to the BNB, maize prices dropped by less than one percent to an average K6 000 per 50 kilogramme (kg) bag across the four cities.

Both the cost of living in the four cities and Malawi’s inflation which is Consumer Price Index (CPI) based have been dropping due improved availability of maize.

In February, the CfSC BNB dropped by 1.5 percent to an average K117 000, propelled by a fall in maize prices.

The February BNB indicated that the price for maize, which is a staple to many Malawians, dropped by about 20 percent to average K6 000 per 50 kg bag compared to the previous month.

Malawi’s year-on-year inflation dropped by 0.6 percentage points to 24 percent in March 2014 compared to the previous month, apparently due to falling maize prices, according to the National Statistical Office (NSO).

Maize prices dropped by about 14 percent in February compared to the month before due to a positive crop outlook, availability of maize in Admarc markets and scaled up humanitarian food distribution.

Famine Early Warning System Network (Fewsnet) March 2014 report indicated that maize prices fell from an average K147.30 per kg—about K7 360 per 50 kg bag—in January to K126.14 per kg—about K6 300 per 50 kg bag—in February.

Fewsnet also noted that based on information from private traders in the rural areas, the decreases are as a result of factors including continued supply and availability of maize in Admarc markets across the country.