November inflation rate soars to 4.8 pc

LYDIA SHEKIGHENDA

EVEN before the government makes good its plan to hike levies on charcoal, the November inflation report shows that the price of the commodity has surged by 22 per cent.

The National Bureau of Statistics (NBS) Director for Population, Census and Social Statistics, Mr Ephraim Kwesigabo, told reporters in Dar es Salaam yesterday that the higher price of charcoal has on one hand pushed up the annual inflation rate for November to 4.8 per cent from 4.5 per cent in October, this year.

He explained that the price increase in other commodities like maize, fish, beverage and tobacco related products has also contributed to the rising inflation.

The Minister for Natural Resources and Tourism, Prof Jumanne Maghembe, announced recently that the government intends to increase levies on charcoal, the main source of heat among majority Tanzanians, as a strategy to conserve the environment by checking the indiscriminate felling of trees.

Prof Maghembe said that 93 per cent of Tanzanians use charcoal and firewood as source of energy, calling for the need to minimise the rate of cutting down trees, which contribute fresh air and rain for human survival. He said the government move to impose higher levies on charcoal as predominant source of energy will help to minimise its consumption and protect the environment.

“If the levies on charcoal will be increased, the price for the commodity will go up and the number of people engaging on tree felling for charcoal will be reduced,” Prof Maghembe said.

Explaining on the annual headline inflation rate for the year ending November 2016, Mr Kwesigabo said the speed of price increase for commodities has increased compared to that of the year ending October 2016.

He said the overall index went up to 104.32 in November from 99.54 recorded in November 2015. Mr Kwesigabo further said that food and non-alcoholic beverage inflation rate for the month of November has increased to 6.2 per cent from 6.0 per cent in October 2016.

“The annual inflation rate for food consumed at home and away from home has increased to 6.4 per cent in November, from 6.0 per cent in October, this year,” he said.

He, however, noted that the monthly headline inflation rate for the month of November 2016 has increased by 1.1 per cent compared to an increase of 0.1 recorded in October, this year. He said the increase of overall index to 104.32 in November from 103.17 recorded in October is attributed to price increase of both food and non-food items.