……..pressure pushes many Malawians into poverty
BLANTYRE-(MaraviPost)-President Lazarus Chakwera’s Tonse Alliance government is still failing to contain economc shocks that have pushed cost of living up in three years in power.
Consequently, economic experts have warned that the prevalent inflationary pressure would push more Malawians into the abyss of ultra-poverty if not contained.
This comes as headline inflation—the rate at which commodity prices change at a given period in an economy—rose by 1.8 percentage points, year-on-year, in April 2023 to 28.8 percent. The inflation has remained on an upward spiral in recent months.
National Statistical Office (NSO) figures released on Friday, May 19, 2023 showed that during the month under review, food and non-food inflation were seen at 37.9 percent and 18.5 percent, respectively.
The national month to month Inflation rate for April 2023 stood at -2.3 percent. Food inflation rate was seen at -4.3 percent while non-food Inflation rate was seen at 0.4 percent.
“The urban month to month inflation rate is at -1.6 percent. Urban Food and Non-Food inflation rates stand at -3.3 and 0.1 percent, respectively. The rural month to month inflation rate is at -2.7 percent. Rural food and non-food inflation rates stand at -4.8 and 0.7 percent, respectively,” reads an NSO inflation update.
Economist Betchani Tchereni attributed the rocketing inflation worsening food supply in the past months, but was quick to say that the situation would start improving as the country enters the harvest season.
“With the cyclone destroying almost ready food crops and worsening Balance of Payment leading to a weakened local currency, we expected inflation to keep rising.
“It simply says that the cost-of-living is higher and more and more Malawians are getting into the ultra-poor situation,” Tchereni told the Daily Times.
Center for Social Concern Economic Governance Programmes Manager Bernard Mphepo said the trend does not tally projections.
He said rising inflation implies that the cost of living will keep on increasing.
The cost of living was already high in March at MK405,000 which is very high when you compare the average income of the majority of Malawians,” Mphepo said.
But Malawi Confederation of Chambers of Commerce and Industry Chief Executive Officer Chancellor Kafelapanjira said he sees the inflation pressure easing in the medium term, a situation which he said would be ideal for industry players.
He said while the figures reflect the change in the cost of living between April 2023 and April 2022, they do not reflect the correct outlook for inflation
“In this case, the indicators that reflect the best outlook are the month-to-month inflation rates. It is pleasing to note that national month-to-month inflation, for the first time in 2023, went down to -2.3 percent. This was driven by a drop in month-to-month food inflation to -4.3 percent.
“This shows that the general price level of food items is on the decline, which is very good news,” Kafelapanjira said.
Chakwera’s Tonse has failed to sustain the ailing economy since 2020 despite devaluation of the local currency, Malawi Kwacha by 25% in 2022.
Source: Daily times
