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(NYASATIMES, REUTERS) Food, fiscal discipline curb Malawi inflation: finance minister

Food, fiscal discipline curb Malawi inflation: finance minister
By Nyasa Times
Published: January 22, 2010

Malawi’s annual inflation for 2009 came in lower than forecast due to a good maize harvest and fiscal discipline, Finance Minister Ken Kandodo has said. Kandodo told Reuters average inflation was 8.4 percent last year, 0.3 percent points slower than in 2008 and well down on the government’s forecast for 2009.

“We have managed to beat our annual average target of 9.7 percent for 2009 and maintained inflation within the single digit range because of abundant food and the successful implementation of fiscal discipline,” he said.

Inflation in the southern African nation had been slowing since hitting a two year peak of 10.1 percent year-on-year in January last year due to good harvests, but quickened slightly to 7.6 percent year-on-year in December on higher food costs.

Maize, the country’s staple produce, accounts for 58.1 percent of the consumer price index.

Analysts last month warned that a shortage of foreign currency and fuel may stoke inflation, and that an El-Nino weather pattern and army worms that have hit nine districts could threaten to reduce output of the staple grain in the 2009/10 farming season.–Reuters

Labels: ECONOMY, INFLATION, MAIZE, MALAWI

posted by MrK @ 4:18 PM