NICO ASSET MANAGERS SEE UPPED INFLATION – Malawi News Online

In its monthly economic review for August 2019, Nico Asset Managers has foreseen a rise in inflation, attributed to the lean season. The projection is is contrary to fiscal and monetary authorities projections which, said that inflation rate will continue to drop.

The firm has justified its forecast, saying that food inflation will  push headline inflation, currently at 9.3%.  The firm also noted that the kwacha will likely depreciate in the medium -term due to the significant current account deficits and weak foreign direct investment inflows.

In July, Nico Asset Manager also said that the maize price increase will pile pressure on headline inflation and raise the cost of investment. 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.