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- Feb 11, 2006
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A jump in food prices in Tanzania pushed the east African country's inflation rate to 13.5 percent in December, although a global fall in oil prices helped lower energy costs, official data showed on Friday. Like neighbours Kenya and Uganda, Tanzania has been wrestling with double-digit inflation fuelled by a surge in commodity prices in 2008 and the government hopes recent declines in global prices will soon be passed on.
While inflation rates are expected to slow this year, they pose a problem for policymakers at a time the region's economies are ratcheting down growth forecasts for 2009 on fears a global slowdown will hurt key commodity exports and tourism.
Food prices in Tanzania, which make up 55.9 percent of the consumer price basket, rose 4.0 percent in December from a month earlier with increases for cereals, starch roots, vegetables, fruit, meat, fish, sugar, nuts and milk.
The overall 2.3 percent month-on-month increase in consumer prices pushed the inflation rate in December to 13.5 percent, up from 12.3 percent a month earlier, the National Bureau of Statistics (NBS) said in a statement.
"The increase in the rate of inflation was mainly attributed to the increase of food inflation of 18.6 percent for the year ended December from 16.3 percent that was registered for the year ended November," it said.
Only two of the index components -- transportation and fuel, power and water -- fell from November. The main fallers were diesel, petrol and kerosene which dropped 9.2 percent, 1.9 percent and 11.4 percent respectively, the NSB said.
Excluding food, Tanzania's inflation rate in December fell to 5.9 percent from 6.3 percent in November. The average annual inflation rate for 2008 came in at 10.3 percent, or 6.7 percent excluding food.
Tanzania's year-on-year inflation rate moved into double digits in September for the first time in nearly a decade.
In neighbouring Kenya, the region's biggest economy, the headline rate was 27.7 percent in December with food prices 37.5 percent higher than a year earlier.
Kenya, however, also saw double-digit monthly declines for diesel, petrol and paraffin.
Inflation in Uganda was running at 14.2 percent in December, also thanks to higher food prices.
Tanzania's monetary policy targets an inflation rate of 5 percent in the medium term.
The finance ministry said in December it had raised its forecast for June 2009 to 6.8 percent from 5.3 percent because it was taking longer than expected for commodity price falls to be passed on. Tanzania's fiscal year runs from July to June.
Tanzania's national consumer price index covers market prices of 207 items collected in 20 towns in mainland Tanzania.
Source:
While inflation rates are expected to slow this year, they pose a problem for policymakers at a time the region's economies are ratcheting down growth forecasts for 2009 on fears a global slowdown will hurt key commodity exports and tourism.
Food prices in Tanzania, which make up 55.9 percent of the consumer price basket, rose 4.0 percent in December from a month earlier with increases for cereals, starch roots, vegetables, fruit, meat, fish, sugar, nuts and milk.
The overall 2.3 percent month-on-month increase in consumer prices pushed the inflation rate in December to 13.5 percent, up from 12.3 percent a month earlier, the National Bureau of Statistics (NBS) said in a statement.
"The increase in the rate of inflation was mainly attributed to the increase of food inflation of 18.6 percent for the year ended December from 16.3 percent that was registered for the year ended November," it said.
Only two of the index components -- transportation and fuel, power and water -- fell from November. The main fallers were diesel, petrol and kerosene which dropped 9.2 percent, 1.9 percent and 11.4 percent respectively, the NSB said.
Excluding food, Tanzania's inflation rate in December fell to 5.9 percent from 6.3 percent in November. The average annual inflation rate for 2008 came in at 10.3 percent, or 6.7 percent excluding food.
Tanzania's year-on-year inflation rate moved into double digits in September for the first time in nearly a decade.
In neighbouring Kenya, the region's biggest economy, the headline rate was 27.7 percent in December with food prices 37.5 percent higher than a year earlier.
Kenya, however, also saw double-digit monthly declines for diesel, petrol and paraffin.
Inflation in Uganda was running at 14.2 percent in December, also thanks to higher food prices.
Tanzania's monetary policy targets an inflation rate of 5 percent in the medium term.
The finance ministry said in December it had raised its forecast for June 2009 to 6.8 percent from 5.3 percent because it was taking longer than expected for commodity price falls to be passed on. Tanzania's fiscal year runs from July to June.
Tanzania's national consumer price index covers market prices of 207 items collected in 20 towns in mainland Tanzania.
Source: