Malawi Kwacha has for the past weeks been strengthening against the South African Rand, an indicator to experts that the inflation rate could go up.

Currently, the inflation rate is at 11.9 per cent down from 12.3 percent in July. Charles Mataya, president of the Economics Associaton of Malawi said the strengthening of the Kwacha would make it to become overvalued an occurrence that would increase demand for foreign currency on the local market. Higher inflation rates affect prices of commodities negatively as prices go up when inflation goes up.