True To President Mutharika’s Words: Malawi Inflation Hits Single Digit Since 2010
Malawi Economy is taking a new shape with the inflation rate hitting a single digit of 9.93 percent in August 2017, as earlier said by President Peter Mutharika that in December this year, he was optimistic Malawi woould have a single digit inflation, this is the first time for the inflation to drop into a single digit since 2010.
According to NSO, the current inflation rate indicates a decline of 0.9 percent from the month of July, 2017.
This year, Malawi produced more than 30 percent surplus in maize owing to good climatic conditions after two successive years of low output due to drought and floods.
NSO figures released show that August inflation rate has eased by 0.9 percentage points from July’s 10.2 percent.
During the same period last year, inflation was at 22.8 percent, and this shows that prices of goods and services have increased at a much more reduced rate.
The dropping of inflation to single digit coincides with the stabilization of Kwacha which, according to NICO Asset Managers report, has relatively stabilized e in August this year depreciating marginally by 0.21 percent against the US Dollar.
The report attributed the Kwacha stabilization to good economic prospects and increased level of foreign exchange reserves may cushion the magnitude of depreciation.
It reveals that the country’s forex reserves remained above the minimum three months. As of 31 August 2017, total forex reserves stood at US$1,027.33 million or 4.91 months of import cover, compared to 4.54 months of import cover at the same time last year.