Thursday, September 8, 2016

Inflation decreases below 5 per cent

DAILY NEWS Reporter
THE annual headline inflation for August has declined compared to the previous month on account of lower food and fuel prices.

The National Bureau of Statistics (NBS) Director of Population, Census and Social Statistics, Mr Ephraim Kwesigabo, said in Dar es Salaam yesterday that inflation fell to 4.9 percent year-on-year last month from 5.1 percent in July.
He said the month-on-month headline inflation rate went down 0.2 per cent in August from an increase of 0.03 per cent a month ago. The overall index went up to 103.28 in August from 98.49 recorded in August 2015.
The inflation for food and Non Alcoholic Beverages for August has decreased to 7.0 per cent from 7.6 per cent recorded in July 2016. The overall index has decreased to 103.28 in August, 2016 from 103.50 recorded in July mainly due to price decrease of food items.
Some food items that contributed to such decrease include cereals by 0.6 per cent, cassava flour by 2.1 per cent, sardines by 3.0 per cent and vegetables by 2.6 per cent. Food and fuel prices are key drivers of inflation in East Africa’s second largest economy.
“This is the first time this year that the annual headline inflation rate has decreased below 5 percent, which is the government’s mid-term target for the inflation rate,” he said.
The inflation rate for food consumed at home and away from home has decreased to 7 per cent in August from 7.8 per cent recorded in July. The 12-month index change for non food products has decreased to 3.0 per cent in August from 3.2 per cent recorded in July.

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