Malawi's inflation contained at 9.6%

“The stable local oil pump price has helped in cushioning the country's headline inflation rate,” said NSO Commissioner, Charles Machinjili.

According to the International Monetary Fund (IMF) forecast based on the year-on-year inflation rate it was pegged at 8.7% though it narrowly climbed by 20 basis points to close the month of November at 9.6% from 9.4%in the preceding month.

NSO says the increase in inflation was as a result of rising food prices especially that of maize since food comprises 58% of Malawi's Consumer Price Index (CPI).

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says on the whole, government has to be commended for containing the situation.

“We should congratulate ourselves for closing at 9.6% in November...[considering that] the whole world was destabilised last year,” said MCCCI President Harrison Kalua.

He said the trend in the year gone by shows that the country took a strict monetary stance that assisted the rise in prices from getting out of hand.

This is in great contrast to a situation in neighbouring Zambia where that country's annual inflation has jumped to 16.6% in December from 15.3% in November according to its Central Statistical Office.

The rising food prices have driven increased inflation in Africa's biggest copper producing country whose inflation was at 8.9% in December 2007.