Maxence Melo
JF Founder
- Feb 10, 2006
- 4,230
- 13,415
Lower fuel, power, water and transport prices pushed Tanzania's annual inflation down to 11.3 percent in May from 12 percent in April, the National Bureau of Statistics (NBS) said on Monday.
Like neighbours Kenya and Uganda, Tanzania has witnessed double-digit inflation since 2008 on the back of higher commodity prices, but the government hopes the recent falling global prices will soon filter through to consumers.
"Inflation is at 11.3 percent, driven lower by non-food items" Ephraim Kwesigabo, NBS director of population, census and social statistics told Reuters by phone.
NBS said in a statement that excluding food, Tanzania's inflation rate in May eased to 1.3 percent from 2.9 percent in April.
"Non food items that had decreased prices include kerosene, petrol, diesel, bus fares and public telephone calls," it said.
The average annual inflation rate for 2008 came in at 10.3 percent, or 6.7 percent excluding food.
The central bank said in late May it saw annual inflation at 11 percent by June, and down to 6 percent by 2010.
Food inflation stood at 17.8 percent, unchanged from April.
Food carries 55.9 percent weight in the east African economy's basket of goods used to measure inflation.
In Kenya, the region's biggest economy, the headline rate was at 19.5 percent in May, while Uganda's stood at 12.4 percent.
On a monthly basis, non-food inflation fell by 0.4 percent in May compared with April, while food prices dipped by 0.6 percent during the same period.
Tanzania's monetary policy targets an inflation rate of 5 percent in the medium term.
The International Monetary Fund said in late March it expects inflation to fall to 7 percent by end-year because of lower food prices.
Bank of Tanzania said in its Monetary Policy Statement for 2009/10 that inflation remained above target, posing a threat to future growth and productivity of the economy.
Tanzania's average annual inflation rate for 2008 came in at 10.3 percent, or 6.7 percent excluding food.
Source: Reuters
Like neighbours Kenya and Uganda, Tanzania has witnessed double-digit inflation since 2008 on the back of higher commodity prices, but the government hopes the recent falling global prices will soon filter through to consumers.
"Inflation is at 11.3 percent, driven lower by non-food items" Ephraim Kwesigabo, NBS director of population, census and social statistics told Reuters by phone.
NBS said in a statement that excluding food, Tanzania's inflation rate in May eased to 1.3 percent from 2.9 percent in April.
"Non food items that had decreased prices include kerosene, petrol, diesel, bus fares and public telephone calls," it said.
The average annual inflation rate for 2008 came in at 10.3 percent, or 6.7 percent excluding food.
The central bank said in late May it saw annual inflation at 11 percent by June, and down to 6 percent by 2010.
Food inflation stood at 17.8 percent, unchanged from April.
Food carries 55.9 percent weight in the east African economy's basket of goods used to measure inflation.
In Kenya, the region's biggest economy, the headline rate was at 19.5 percent in May, while Uganda's stood at 12.4 percent.
On a monthly basis, non-food inflation fell by 0.4 percent in May compared with April, while food prices dipped by 0.6 percent during the same period.
Tanzania's monetary policy targets an inflation rate of 5 percent in the medium term.
The International Monetary Fund said in late March it expects inflation to fall to 7 percent by end-year because of lower food prices.
Bank of Tanzania said in its Monetary Policy Statement for 2009/10 that inflation remained above target, posing a threat to future growth and productivity of the economy.
Tanzania's average annual inflation rate for 2008 came in at 10.3 percent, or 6.7 percent excluding food.
Source: Reuters
