At least seven people were shot dead during protests in Malawi's northern city of Mzuzu on Wednesday, a senior church official has told the BBC.
Rev Maurice Munthali said he could again hear gunfire on Thursday and there was a heavy presence of security forces on the streets.A police spokeswoman could only confirm one death but Rev Munthali said he had seen the bodies in the mortuary.
The protesters are angry at price rises and President Bingu wa Mutharika.
The government recently passed an austerity budget, raising taxes to reduce dependence on aid after many donors cut funding.
Donors accuse Malawi of mishandling the economy and failing to uphold human rights.
The protest broke out in several cities but the deaths occurred in Mzuzu, some 300km (185 miles) north of the capital, Lilongwe.
"I'm actually in the mortuary identifying the bodies," Rev Munthali deputy Secretary General of the Church of the Central Africa Presbyterian told the BBC's Raphael Tenthani in Blantyre. "It's very sad."
He said that some of those in hospital had not been demonstrating but were caught in crossfire.
Police spokeswoman Norah Chimwala confirmed one death and more than 10 gun-shot injuries.
She could not confirm if the police had caused the death.
Machetes There have also been reports that the property of a government minister has been attacked by demonstrators in the city.
Police fired teargas at demonstrators in Lilongwe and have set up roadblocks to prevent protesters from entering the city centre.
The owner of Malawi's private Capital Radio, Alaudin Osman, told the BBC the authorities had ordered the station to stop live broadcasts because they were allegedly aggravating the situation.
On Tuesday, supporters of President Mutharika's Democratic Progressive Party (DPP), armed with machetes, smashed the vehicles of two private radio stations in the commercial capital, Blantyre.
They roamed the streets of the city, threatening to deal with anyone who took part in the protests, correspondents say.
But thousands of demonstrators took to the streets of Blantyre on Wednesday, despite the threats.
High Court judge Chifundo Kachale granted the injunction that the nationwide protests - organised by a coalition of civil society groups - were illegal in a late night ruling on Tuesday.
Malawi is one of the poorest countries in the world, with an estimated 75% of the population living on less than $1 (60p) a day.
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