Rise in food prices has pushed Malawi’s year on year inflation to 29.2 percent in May, the highest in 10 years, according to figures from the National Statistical Office.

The slight decrease in transport fares for the short distance below 50 kilometres has pushed down annual headline inflation to 3.7 per cent, according to data from Uganda Bureau of Statistics (Ubos). 

Malawi's central bank cut its benchmark interest rate for the first time this year to boost economic activity, saying inflation and growth are expected to be lower this year than expected in July.

Malawi's central bank cut its Liquidity Reserve Requirement (LRR) and its Lombard rate to immediately boost liquidity in in the banking system and lower the cost of funds to give commercial banks an incentive to support those economic sectors that are hit by the COVID-19 pandemic.