Malawi inflation slows on lower food costs

Malawi's inflation slowed to 7,9 percent year-on-year in May from 8,1 percent in April because of a seasonal decline in food costs, the National Statistical Office said on Tuesday.

Malawi's second consecutive surplus harvest of the staple maize grain has helped reduce inflation from 15 percent in June 2006.

"Overall inflation has continued to go down due to seasonal decline in food costs; non-food costs which have been rising since September last year have registered 10,2 percent over two consecutive months," the NSO said.

Food accounts for 58,1 percent of the consumer price index.

This is the second consecutive month that annual inflation has slowed down after an upward trend that started in October last year on the back of rising food costs fueled by high oil prices.

The government and the International Monetary Fund have said inflation is projected to ease to around 6 percent for the 2008/09 financial year despite rising oil prices.