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Tanzania inflation falls to 10.7 pct in June

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Invisible, Jul 15, 2009.

  1. Invisible

    Invisible Admin Staff Member

    Jul 15, 2009
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    Tanzania's annual inflation rate fell to 10.7 percent in June from 11.3 percent in May due mainly to a drop in food prices, the National Bureau of Statistics (NBS) said on Wednesday.

    Like neighbours Kenya and Uganda, Tanzania has experienced double-digit inflation since 2008 due to rising commodity and fuel prices. Tanzania's annual inflation rate entered double digits in September for the first time in nearly a decade.

    "The decrease in the rate of inflation was mainly attributed to the decrease of food inflation from 17.8 percent registered in the year ended May 2009 to 17.0 percent in the year ended June 2009," NBS said in a statement on its website.

    "Non-food inflation has also decreased to 1.0 percent in the year ended June 2009 from 1.3 percent in the year ended May 2009," it said.

    Among food prices that fell were those for cereals, sweet potatoes, vegetables, fruits, beans, cowpeas and spices.

    Food carries a 55.9 percent weight in the east African economy's basket of goods used to measure inflation.

    The average annual inflation rate for 2008 was 10.3 percent, or 6.7 percent excluding food. The central bank said in late May that it saw annual inflation at 11 percent by June and down to 6 percent by 2010.

    On a monthly basis, non-food inflation rose by 0.7 percent in June compared with May, while food prices eased by 1 percent.

    Tanzania's monetary policy targets an inflation rate of 5 percent in the medium term. The International Monetary Fund said earlier this year it sees inflation easing to 7 percent by end-year on falling 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.

  2. MaxShimba

    MaxShimba JF-Expert Member

    Jul 15, 2009
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    How can we solve these things? Nchi ina kila kitu,!!, where is the problem? Is it leadership, people or what? It aint adding up at all.
  3. Mazingira

    Mazingira JF-Expert Member

    Jul 15, 2009
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    Tuna bora viongozi. People (our leaders) are struggling to fill their pockets only. Wananchi walie tu. Inauma sana.
  4. Robweme

    Robweme Senior Member

    Jul 16, 2009
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    This cannot be solved, unless free market economy is disclosed.
    The price of the commodities in Tanzania is depending who is buying, and where are you buying. For isntance, if you go vingunguti to buy a goat, with barefoot,walking you will get at a cheap price than anyone going driven in nice car.Every commodities has its own inflation for aech particular day and whos is buying.
    Serikali ili impose soko huria, kila mtu ana uwezo wa kupanga bei yake hakuna mtu wa kumuzuia labda kwenye mafuta kwasababu wafanya biashara wamewagusa hata viongozi.Lakini food prices are not controlled,are sold at anyprice the seller is willing to.
    Hata hivyo inflation bado iko juu sana.
  5. N

    Nyauba JF-Expert Member

    Jul 16, 2009
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    we managed to decrease it from 30% to 5% (1996 -2005)!!!!!

    why know has been that much worse??
  6. T

    Tufu Member

    Jul 16, 2009
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    The problems is the people. We the people hatuna akili. If we would have hata ndogo kama mnyoo tusingekuwa maskini kiasi hiki
  7. Kyakya

    Kyakya JF-Expert Member

    Jul 16, 2009
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    Viongozi wabovu tuliowaweka madarakani ndio sababu
  8. Mzuvendi

    Mzuvendi JF-Expert Member

    Jul 16, 2009
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    Tanzania don't have everything. Tanzanians don't have skills that are needed to add values to simplest things we use daily. Tanzania relies on imported petroleum which plays an important role when it comes to inflation.
  9. The Farmer

    The Farmer JF-Expert Member

    Jul 16, 2009
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    The leader that we have are too political, sasa hata mambo ambayo ni sensitive yanayohusu uchumi wa Nchi yetu yanapelekwa kisiasa. Kwa hiyo sasa hivi mtu unakuwa na Pesa nyingi na unanunua vitu vichache!!!
  10. Mzuvendi

    Mzuvendi JF-Expert Member

    Jul 16, 2009
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    You didn't manage to decrease it in real sense. The engine that drives the Tanzanian economy is government spending. When government cuts public spending as it happened in Tanzania between 1996-2000, the supply of money becomes scarce, and many Tanzanians spend very little on basic commodities or stop spending money altogether. The consequence is the fall of prices of many commodities because there are fewer people to buy them (supply and demand). Can you call this inflation reduction? Yes you can, but there are some negative issues to it.

    Likewise, the months of Many, June and July, a lot of peasants sell their products at give away prices. This alone could explain why inflation is lower today than three months ago.