Tanzania Inflation Increases To 6.5% in July 2014

Tanzania Economy The Tanzania economy relies most heavily on the agriculture sector for contributions to the GDP, however other sectors are also becoming more economically significant as the country develops. According to The National Bureau of Statistics of Tanzania the Annual Headline Inflation Rate for the month of July, 2014 increased slightly to 6.5% from 6.4% in June, 2014. Currently, the agriculture sector accounts for nearly half of the GDP of the Tanzania economy and employs nearly 80% of the workforce in the country. Growing in impact and importance, however, is the Tanzania tourism sector, which currently ranks as the second highest foreign exchange earner in the country behind agriculture. The mineral production of natural resources such as gold, diamonds and tanzanite has also grown significantly in the last decade and currently represents the largest source of economic growth in Tanzania, providing over 3% of the GDP and accounting for half of the exports from Tanzania. Population: 43 millions GDP: $23.7 billion (2011) GDP growth: $433 million (2010) Inflation: 17.4% (June 2012) FDI net: 433 million (2010) Main economic sectors: agriculture, mining, tourism Main trading partners: China, India, Kenya, UAE Main export commodities:  gold, coffee, cashew nuts, cotton Today, the industrial sector in Tanzania is one of the smallest in Africa and accounts for less than 10% of the Tanzania GDP, however the sector continues to be of considerable importance to the Tanzania economy as it is still one of the most reliable sources of government revenue in terms of import sales as well as for both corporate and income taxes, accounting for over half of the annual government revenue collection

According to The National Bureau of Statistics of Tanzania the Annual Headline Inflation Rate for the month of July, 2014 increased slightly to 6.5% from 6.4% in June, 2014. The National Consumer Price Index (NCPI) which measures the change over time in the cost of a fixed basket of 224 goods and services purchased by a representative sample of households in Tanzania on monthly basis, increased from 148.98 in June 2014 to 149.16 in July 2014. Food and Non Alcoholic Beverages Inflation Rate has stagnated at 8.1% in July 2014 as it was also recorded in June 2014. In addition, the 12 month index change for non food products has increased to 4.9% in July 2014 from 4.8% recorded in July 2014. The Annual Inflation Rate which excludes food and energy for the month of July 2014 has decreased to 3.2% in July 2014 from 3.5% recorded in June 2014.