BabuK
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- Jul 30, 2008
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Tanzania`s annual inflation rate rose for the 14th consecutive month in December, with some analysts expecting food and fuel costs to keep pushing consumer prices higher in the coming months.
The National Bureau of Statistics (NBS) said yesterday prices rose 2.0 percent during December, pushing the year-on-year inflation rate to 19.8 percent from 19.2 percent in November.
"The inflation rate will continue to rise over the coming months because the rains have been erratic and global oil prices are still high. The recent hike in power tariffs will also push consumer prices up," said Humphrey Moshi, professor of economics at the University of Dar es Salaam.
Inflation rose throughout east Africa for most of last year, driving interest rates through the roof, unsettling local bond markets, and causing social tension and street protests in Uganda.
However, the rates of inflation in Uganda and Kenya appear to have turned the corner, analysts say, after an aggressive tightening of monetary policy in both economies. Tanzania has taken some steps to tackle rising prices, but not the same monetary shock therapy administered by its neighbours.
Food and non-alcoholic beverages rose 27.1 percent for the year ended December from 26.1 percent in November, NBS said, energy prices rose 41 percent year-on-year from 39.2 percent in November.
Tanesco raised electricity tariffs by 40.29 percent on Sunday, citing rising costs of energy generation from oil-fired turbines and fuelling inflationary expectations - REUTERS.
SOURCE: THE GUARDIAN
