Headline inflation increased in January 2022 to 12.1 percent from 11.1 percent recorded in December 2021, figures from National Statistical Office (NSO) show.

The increase in year-on-year inflation has been attributed to an increase in food inflation by 0.6 percent to 14.2 percent in the month under review from 13.6 percent in the preceding month.

Non-food inflation, however, went down by 3.2 percent to 9.6 percent from 12.8 percent in December 2021.

This comes as the 2022-23 National Budget, which Finance Minister Sosten Gwengwe presented last week, is anchored on an assumption that, in the next 12 months, Malawi will attain an average inflation of 9.1 percent.

Commenting on the figures, Centre for Social Concern (CfSC) says that this vindicates its recent survey which shows that the cost of living remained elevated in the country.

Its figures show that, in January 2022, the cost of living for a household of six people reached K236,000 from K227,000 in the preceding month.

CfSC Economic Governance and Programmes Coordinator Bernard Mphepo said, as the rise is mainly attributed to the increase in food inflation, the government should make sure that food is available through reliable markets such as Agricultural Development and Marketing Cooperation (Admarc).

“Inflation is expected to continue rising up to around April this year, when the lean season is over, but while that is so, the government should equip Admarc and make sure that food is available across the country to curb the sharp rise in prices,” he said.

Meanwhile, the National Statistical Office (NSO) has also rebased the Consumer Price Index (CPI) base year to December 2021 from December 2017.

According to a statement from the NSO, the exercise is conducted periodically to reflect changes in household consumption patterns over time and to improve the CPI compilation system.

The statement adds that the CPI weights are based on monetary expenditures relating to consumption in all households across the country. “As a result, fluctuations in inflation rates observed in the current series are partly due to this difference in weights. This scenario will continue until December 2022. From January 2023, the indices will be directly comparable since they will have the same weights,” the statement reads.

Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.

He is however flexible as he also writes about current affairs and national issues.

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The post Inflation jumps to 12.1% in January – The Times Group Malawi appeared first on Business Malawi.