The recent maize price increase will pile pressure on headline inflation and raise the cost of investment, according to Nico Asset Managers Limited. In a Mid-Year Economic Report released last week, Nico saw that localised maize shortages in many parts of the Southern Region, are causing upwards pressure on prices, which is a similar observation with other stakeholders in the country.

Nico Asset Managers Limited saw that usually June is when maize prices are eased, due to the month being a harvest period, availing the commodity on the market. This year, due to Cyclone Idai floods, prices were hiked after scarcity for the staple food.

The year-on-year headline inflation for May 2019 was at 8.9%, as shown by the National Statistical Office (NSO), as Nico Asset said inflation is expected to ease to around 8% at the end of this year and gradually converge to 5% over the medium-term.

Meanwhile, the International Food Policy Research Institute has revealed findings that Malawi has a widespread lack of maize grading standards and common weights measures that characterise the country’s maize marketing compared to other countries in sub-Subsaharan hence, it does not fetch desired revenue on the market.