NBS - Annual Inflation Rate Drops Drastically

By Daily News Reporter in Dodoma

THE Annual Average Headline Inflation Rate from January to December, 2019 has decreased to

3.4per cent from 3.5per cent recorded during the corresponding period in 2018, the National Bureau of Statistics (NBS) has said.

NBS Acting Director of Population, Census and Social Statistics, Ruth Davison further told a news conference here yesterday that the Annual Average Inflation Rate for food items increased to 4.3per cent in 2019 from 3.7per cent in 2018.

On the other hand, she said, the Annual Average Inflation Rate for Non-food items decreased to 4.0per cent from 4.3per cent recorded in 2018, adding: "The Annual Average Inflation Rate which excludes food and energy increased to 3.0per cent in 2019 from 1.9per cent recorded during the corresponding period in 2018."

Overall, the NBS statistics show that the National Consumer Price Index (NCPI) for commodities remained stable over the whole period from January to December, 2019, and this movement according to Ms Davison, resulted into a relatively stable Headline Inflation Rate over the same period, and recording the lowest Headline Inflation Rate of 3.0per cent in November and December, 2019.

Meanwhile, according to NBS, the Annual Headline Inflation Rate for the month of December, 2019 remained stagnant at 3.8per cent as was recorded during the corresponding period in November 2019.

The stagnation according to Ms Davison explains that the speed of price change for commodities for the year ended December, 2019 remained the same as that recorded for the year that ended November 2019.

However, the statistics show, food and non-alcoholic beverages inflation rate for the month of December 2019 increased to 6.3per cent from 6.1per cent recorded in November 2019.

Equally inflation rate for food consumed at home and away for the month of December 2019, also increased to 6.9per cent from 6.7 recorded in November 2019.

"On the other hand, the 12-month index change for nonfood products in December 2019, decreased to 3.3per cent from 2.4per cent recorded in November 2019," said Ms Davison.

In comparison with other East African countries of Kenya and Uganda, she said, the annual inflation rate in Kenya increased to 5.82per cent from 5.56per cent recorded in November, 2019.

In Uganda, the annual headline inflation rate increased to 3.6per cent from 3.0per cent recorded in November, 2019.

NCPI measures the change over time in the cost of a fixed basket of goods and services that are purchased by a representative sample of households in Tanzania.

A basket includes a list of 278 goods and services of which 97 are Food and Non-Alcoholic Beverages and 181 are Non-Food items that are being priced on monthly basis.