Malawi’s Centre for Social Concern (CfSC) has said the average cost of living for a low-income family in cities rose by 20 percent in 2012 from K70 930 (about $208) in January to K84 463 (about $248) in December.

This shows how people’s disposable incomes were affected over the year partly due to economic reforms the Joyce Banda administration is implementing in a bid to resuscitate the Malawi’s ailing economy.

In January 2012, CfSC pegged the cost of living in cities at K70 930. In April, it dropped to K69 221 (about $203) and rose again to K76 314 (about $224) in June. In September, it slightly dropped to K76 182 (about $224) before rising again to K84 463 (about $248) in December.

The December 2012 Basic Needs Basket (BNB) survey shows that the average cost of living for a low-income earning family of six in Blantyre, Lilongwe, Zomba and Mzuzu rose from K79 514 (about $233) to K84 463 (about $248).

In Lilongwe, according to the survey, cost of living rose from K88 737 (about $260) to K91 632 (about $269) whereas in Zomba it went up from K70 631 (about $207) to K76 209 (about $224). In Blantyre it increased from K83 074 (about $226) to K87 756 (about $258) while in Mzuzu it rose from K75 613 (about $222) to K82 254 (about $241).

CfSC attributes the upward surge to increases in prices of maize and other food items such as beans.

In Lilongwe, according to the survey, a 50kg bag of maize was selling at K4 329 (about $12) up from K3 471 in November whereas in Zomba it rose from K3 600 (about $10) to K4 200 ($13). In Blantyre, maize was pegged at K4 500 (about $13.23) up from K3 958 (about $11.64) in November while in Mzuzu, it rose from K2 750 (about $8) to K5 200 (about $15).

“The staple went up by 20 percent in Lilongwe, 14 percent in Zomba, 12 percent in Blantyre while in Mzuzu it went through the roof by 47 percent.

“The unprecedented increase in maize prices in Mzuzu is attributed to cross-border trade and smuggling of the grain to Tanzania which has dramatically pushed up the prices,” reads the statement in part.

CfSC says poor households devote over 50 percent of their income to buying food items and as such, the sustained increase in food prices substantially reduces their income.

Cost of living has recently been on the rise and experts have attributed it to the devaluation of the kwacha and its subsequent floatation on May 7. Inflation has also been surging with the November inflation hovering at 33.3 percent up from 30.6 percent in October.

The December 2012 BNB survey further reveals that the rising cost of living has made some basic services such as electricity, water and transport out of reach of most Malawians.

It adds that following the recent increase in electricity tariffs, almost half the households where the monthly cost of living data is collected, had their power disconnected, opting for cheaper sources of energy.

In the 2012/13 budget, government is implementing a number of economic reforms which include liberalisation of foreign exchange regime and removal of price controls on fuel, water and electricity.