Skyrocketing inflation a cause for worry-Economist

Inflation

Malawi University of Business and Applied Sciences Economics, Betchani Tchereni has said the sky rocketing inflation in the country is a cause for concern.

Tchereni expressed his expert opinion following indications by the National Statistics Office that headline inflation for October went up to 26.7 percent.

This is the highest recorded since 2013 when it hit 27.9 percent.

Food and Non-Food Inflation rates are at 34.5 and 18.6 percent, respectively.

The national month to month Inflation rate for October 2022 stands at 4.0 percent.

Food inflation rate is at 6.3 percent while Non-Food Inflation rate is at 1.4 percent.

Tchereni suggested Malawi needs to look into production if it is to deal with the rising inflation.

He said the problem is that inflation is not a monetary issue but it has been left in the hands of Reserve Bank of Malawi alone.

"This is an issue to do with production.

"We are not producing what we consume," Tchereni said.

The 26.7 percent is a 1.2 percent increase from 25.5 percent which was recorded in September.

In 2021, the inflation rate was recorded in single digit at 9.8 percent.