Families are spending K20 000 more on basic commodities following a 10 percent rise in the monthly survival minimum expenditure basket (Smeb) to an average of K217 000, according to the World Food Programme (WFP) data.
Smeb measures the minimum amount of money a household needs each month to cover essential food and non-food items, helping to assess whether families can meet their basic needs.
The jump, driven by rising prices of key food items, including maize, beans, fish and sugar, has left low-income earners in urban areas needing to spend K258 000 per month, higher than the K220 000 needed in the Southern Region rural, K207 000 in Central Region rural and K205 000 in Northern Region rural as consumers in rural areas barely pay rent and electricity.
In an interview on Saturday, Mulanje-based Esnart Master, a domestic worker and single mother of three, said life has become unbearable for her household in the village.
“Although I am earning K80 000 per month, the money is not enough to feed my children, let alone send them to school. It is just for survival,” she said.
On his part, Lunzu-based second-hand shoe seller Gift Makuluni said meeting the expenses at home is difficult.
“Nowadays, we just focus on rent and the cheapest food we can get,” she said.
The rise in Smeb is happening at a time inflation has dropped three consecutive months and settled at 27.7 percent in May on account of easing maize prices during the ongoing harvest season.
Food inflation, although among the highest in Africa, fell to 32.7 percent in May from 35.8 percent in April while non-food inflation rose slightly to 20 percent in May from 19.4 percent in the previous month.
Ironically, maize prices have started to rise again, averaging K1 026 per kilogramme (kg) in the second week of June, following a seasonal low of K976 per kg in May, marking a five percent increase month-on-month, according to WFP data.
On the other hand, beans prices rose by 11 percent over the past month, reaching K5 960 per kg by the second week of June while sugar prices surged by 41 percent to K5 252 per kg during the review period largely due to commodity scarcity on the local market.
In a written response on Friday, WFP head of vulnerability analysis and mapping and monitoring and evaluation Daniel Svanlund observed that although maize remains available in most markets, affordability is becoming a critical barrier to access.
He said: “For households already struggling to meet their basic needs, rising maize prices are eroding purchasing power.
“Many low-income households are increasingly unable to purchase adequate food, with implications for nutrition and food security outcomes.”
Svanlund said maize prices remain elevated compared to previous years, adding that in June 2024, the national average price was K794 per kg “underlining the exceptional pressure on household food access”.
In an interview yesterday, Consumers Association of Malawi executive director John Kapito said with the current economic challenges, it will be difficult to meet the cost of living benchmarks.
“It is important for consumers to make realistic household budgets and adjust our spending to suit these hard times,” he said.
As part of the food component, maize contributes about 53.7 percent of the consumer price index, an aggregate basket for goods and services for computing inflation, which means any movement in the price of maize has a direct bearing on consumers.
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