Malawi’s inflation rate under the Harmonised Consumer Price Index (HCPI) is still the highest in the 19-member Common Market for Eastern and Southern Africa (Comesa) trade bloc.
The latest Comesa HCPI indicates that Malawi recorded the highest month-on-month inflation rate of 2.1 percent while Seychelles and Zambia were second with a rate of 0.9 percent.
Malawi inflation, according to the National Statistical Office (NSO), was recorded at 23 percent in August 2015.
The Comesa HCPI shows year-on-year inflation rate stood at 24.8 percent followed by Sudan at 13.8 percent while Zimbabwe recorded the least annual inflation rate of -2.7 percent in August 2015.
However, the region’s month-on-month inflation rate stood at 0.4 percent in August 2015 from 0.8 percent the month before.
The region’s year-on-year inflation rate for August was at 6.3 percent down from 7.3 percent registered in July, according to the index.
Based on the main components of expenditure, education registered the highest annual inflation rate of 23.3 percent in the region while the transport sector recorded the least annual change of 0.7 percent in August.
Bankers Association of Malawi (BAM) president Misheck Esau has described Malawi’s situation as scary to local and foreign investors.
“We really have to control this heavy inflation for investors to gain positive returns,” he said in an interview, adding that the country should aim for single digit inflation.
At one time in February 2013, the country’s inflation reached an all-time high of 37.9 percent. n
