BoT: Zanzibar records -0.6 pct food inflation

Bank of Tanzania (BoT)

Price of fish, bread and wheat flour in Zanzibar drove food inflation down to -0.6 percent in the year ending April this year from 1.6 percent in the year ending March 2015, the Bank of Tanzania has said. 

 

The bank said in its May Monthly Economic Review that month-to-month food inflation rose to 2.7 percent from negative 1.6 percent in March 2015, mainly driven by price changes in maize flour and bread.

 

Non-food inflation rose to 2.8 percent in the year ended April 2015 from 0.1 percent in the year ending   March   2015,   mostly on account of increase in prices of cement and charcoal.

 

The review noted that inflation  excluding food  and  energy  remained  stable at 2.9  percent  in  the  year  ending  April 2015, as in March  2015. 

On a month-to-month basis, the inflation rose to 1.8 percent from 0.9 percent in March 2015.Annual inflation rate for energy and fuels remained almost unchanged at negative 10.1percent in April 2015 compared with negative 10.0 in March 2015. During April 2015, the review showed total resources of the Government of Zanzibar amounted to 31.4bn/- , out of which 94.8 percent was revenue and the balance was grants. 

 

Expenditure for the month was 30.7bn/-, as a result, government budgetary operations recorded a surplus of 0.7bn/- .

 

Revenue collections amounted to 29.8bn/- and was 7.1 percent below the target for the month. Tax revenue amounted to 27.8bn/- , which was 7.2 percent below the target. Government expenditure was 30.7bn/- , out of which 28.1bn/- was recurrent expenditure and the balance was development expenditure.  

 

Recurrent expenditure was 4.0 percent below the estimate for the month, while development expenditure was 2.6bn/- and was 49.2 percent below the estimate, due to lower inflows from development partners.

 

 Government contribution to development expenditure accounted for 96.8 percent, and the balance was foreign funding. 

 

During the year ending April 2015, the value of import of goods and services decreased to USD260.3m from USD317.6m in the year ending April 2014. 

 

Goods import decreased to USD201.4m from USD247.2m, mainly contributed by a decrease in the value of capital and consumer goods imports.

 

During the year ending April 2015, current account deficit narrowed to USD 69.5m from USD87.4m in the year ending April 2014.

 

This was mainly contributed by a decrease in imports of goods and services, and an increase in receipts from tourists.

 

SOURCE: THE GUARDIAN