Malawi: Malawi - Special Focus: Is socio-political stability at risk due to sharply declining household purchasing power?

• The purchasing power of Malawians has deteriorated sharply as a result of economic measures taken in 2012. Following the devaluation of the local currency (Kwacha), the average monthly inflation rate has soared to 38% in February 2013. The price of maize, the main staple food, is more than double its price two years ago. Other important food commodities such as rice and beans have also experienced substantial price increases.

• Despite efforts to curb down soaring living costs, social unrests have recently heightened, raising concerns about socio-political stability.