Figures from the National Statistical Office (NSO) Stats Flash shows that inflation rate increased from 9% to 9.3%. However, Alliance Capital Limited, has predicted a continued rise in headline inflation in coming months, justifying the prediction through volatility on the market.

In a monthly economic report dated July 2019, the firm says inflationary pressures from non-food components have remained relatively mute on the back of stable fuel prices, together with the recent appreciation in the exchange rate are expected to remain contained.

On the other hand, Reserve Bank of Malawi (RBM) recently revised its 2019 annual inflation target from 8% to 9% owing to elevated maize prices. A report by the Monetary Policy Committee (MPC) has attributed the increase to food price developments as food inflation averaged 13.5% in the second quarter from 11.9% in the first quarter propelled by high maize prices.

At the same time, on the latest World Economic Forum (WEF) Global Competitiveness Index, Malawi ranked 128 out of 141 economies; a step above last year’s ranking.

The report shows a score of 43.4, below the 50 benchmark for competitiveness.