Inflation rises to a five-year high
With Covid-19 and the war in Ukraine being blamed after inflation rose to 4.5 percent in July – the highest rate since November 2017. PHOTO | COURTESY
Dar es Salaam. Experts have hinted at what should be done to cope with the current situation, in which inflation has increased to a five-year high.
The increase in the prices of some food products, soft drinks, and non-food products has sent the annual headline inflation rate to 4.9 percent in October this year, compared with 4.8 percent in September, according to the National Bureau of Statistics (NBS).
A higher inflation rate than that was recorded in October 2017 at 5.1 percent, according to the available official data.
The inflation rate has increased for eight consecutive months since March this year, when it was 3.6 percent. Some food and non-food products that indicated an increase in price are rice by 4.3 percent, finger millet by 0.6 percent, maize by 2.0 percent, maize flour by 3.2 percent, chicken by 0.7 percent, fresh fish by 0.4 percent, fresh seafood by 8.9 percent, dry seafood by 1.0 percent, fruit by 0.7 percent, beans by 3.9 percent, soy by 5.1 percent, gas by 5.1 percent, and wood by 2.6 percent.
Data from the Ministry of Investment, Industry, and Trade, shows that the prices of rice, corn, sorghum, wheat, beans, and round potatoes have also risen.
Specifically, the price of maize has doubled, recording an increase of 120 percent between November 5, 2021, and November 4, this year, from Sh48,366 to Sh106,305 per 100 kilogram bag. During the same period, the price of a 100-kilogramme bag of rice increased by 67 percent to Sh290,594; that of a 100-kilogram bag of sorghum increased by 27 percent to Sh127,500; that of a 100-kilogram bag of wheat increased by 61 percent to Sh213,818; that of a 100-kilogram bag of beans increased by 67 percent to Sh296,000; and potatoes increased by 36 percent to Sh91,781.
Dr Donath Olomi, a business and economic expert, stated that the only way to control inflation is to reduce reliance on foreign energy, especially fuel.
“Let’s use our own energy; it will help reduce inflation in the future. If it’s gas, let’s increase its use in cars because oil contributes to inflation,” said Dr Olomi, adding that the government should invest in infrastructure to promote the use of domestic gas
