Economy records inflation increase

BY NELSON KESSY

10th November 2013

Tanzania annual headline inflation for the month of October 2013 has slightly increased to 6.3 per cent from 6.1 per cent recorded in September, implying instability in the country’s economy.

The inflation rate was contributed by seasonal food crops since August, whereby the inflation rate for food and non alcoholic beverages increased to 6.9 per cent last month from 6.5 per cent compared to September 2012, the National Bureau of Statistics (NBS) said.

The NBS Director for Population Census and Social Statistics, Ephraim Kwesigabo, said: “The annual inflation rate for food consumed at home and away from home increased to 7.3 per cent in October 2013 compared to 6.9 per cent in September this year.

“The 12-month index change for non food products has increased to 6.1 per cent in October this year compared to 6.0 per cent of September last year”.

A steadily increasing trend in prices of commodities is observed from October 2012 to April 2013 and relatively stable movement of the index is observed from May 2013, to October 2013 in different categories.

The categories included food and non-alcoholic beverages combining food consumed at home and restaurants, energy and fuels combining electricity and other fuels for use at home with petrol and diesel.

“The annual headline inflation rates have shown that a decreasing pattern from 12.9 per cent in October 2012 to 6.1 per cent in September 2013 and slightly increasing to 6.3 per cent in October this year,” Kwesigabo said,

He added that the monthly headline inflation rate for the month of October, 2013 has increased by 0.6 per cent compared to 0.5 per cent the previous month.

“Food items that have mainly contributed to such an increase include, maize flour by 1.5 per cent, cassava flour by 3.5 per cent, meat by 1.2 per cent, live chicken by 3.7 per cent, fresh fish by 4.1 per cent dried fish by 9.0 per cent dried sardines by 2.5 per cent, fresh cow milk by 1.2 per cent, fruits by 2.9 per cent, coconuts by 2.6 per cent, sweet potatoes by 4.2 per cent and honey by 5.0 per cent.”

Non-food items that have mainly contributed to the increase of index include garments for children by 0.4 per cent, kerosene by 2.1 per cent and cleaning as well as maintenance products by 0.4 percent.

While the Tanzania inflation rate increased to 6. 3 per cent level, in Kenya and Uganda it climb to 7.76 per cent and 8.1 per cent respectively.

Tanzania’s inflation rate averaged 7.72 per cent from 1999 until 2013. It reached an all time high of 19.8 per cent in December, 2011 and a record low of 3.4 per cent in February, 2003.

SOURCE: GUARDIAN ON SUNDAY