Stable food, oil prices keep inflation rate at single digit
What you need to know:
Headline and core inflation rates remained at single digits between January and November 2017, consistent with the monetary policy stance, and assisted by prudent fiscal operations.
Dar es Salaam. Stable food and energy prices helped to maintain inflation rate at a single digit last year, The Citizen has learnt.
Headline and core inflation rates remained at single digits between January and November 2017, consistent with the monetary policy stance, and assisted by prudent fiscal operations.
National Bureau of Statistics (NBS) reports have shown that the inflation rate has averaged 4.9 per cent during the first 11 months of 2017.
The monthly inflation rate started 2017 at 5.2 per cent, before increasing to 6.4 per cent in March and April.
It hit the lowest rate of 4.4 per cent in November 2017.
However, overall Consumer Price Index increased to 108.94 in November 2017 from 105.92 in January 2017. The increase of the overall index is mainly attributed to price increase for food and non-food items.
NBS monthly price reports showed that good harvests earlier 2017 improved significantly the availability of food, lowering prices and reducing the headline inflation rate to below the medium-term target of 5 per cent.
That kept inflation within the authorities’ target range.
Analysts and economists say the annual inflation rate stabilised due to good harvests and low oil prices.
Although prices of beans and rice increased by 14 and 29 per cent respectively during the year that ended in September while prices of maize – a staple -- fell by one per cent.
The Bank of Tanzania’s Monetary Policy Statement for June 2017 showed that the headline inflation was projected to remain around the medium term target of 5 per cent as food supply would improve due to favourable weather.
The trend indicates that inflation will remain at a single digit in 2017/18, supported by decline in food and energy prices.
NBS reports have indicated that food and non-alcoholic beverages inflation ranged from 7.6 and 11.8 per cent from January to November 2017.
The major drop was experienced on restaurants and hotel where its inflation was below one per cent since April 2017 from four per cent during the first three months of last year.
Inflation rate for health dropped from 4.8 per cent in January 2017 to two per cent in November.
Other commodities and services with their inflation rates in January 2017 in brackets were alcohol (1.6 per cent) and tobacco (5).
The rates fell to 1.4 and 2.5 per cent in November.
