Malawi's inflation rate for May this year has recorded a three percentage points drop on year-on- year basis to 15.8 percent thanks to a downward trend in food prices after harvest, local media reported Thursday.

The Nation online cited a report released by National Statistics Office (NSO) on Tuesday as saying the inflation has been declining since April when it dropped to 16.1 percent from 16. 6 percent in March.

"Food prices have continued the downward trend first registered in April with the current month-on-month decline standing at 3.7 percent compared to a decline of 3.4 percent registered at the same time last year," reads the NSO report.

Malawi has experienced a food shortage last year and early this year resulting from crop failure in the 2004/05 farming season due to a prolonged dry spell.

This year, however, the country has registered a 200,000 tons of maize surplus over the national grain requirement of 2.1 million tons due to the favorable rain pattern coupled with a fertilizer subsidy program.

Analysts have forecast inflation to average 12.3 percent by the end of the year as a result of reduced food prices.

Source: Xinhua