East Africa: Inflation Rates Drop Across East Africa

By Katare Mbashiru in Dodoma

EAST African countries have recorded falling inflation rates, with Uganda recording the least headline inflation compared to Tanzania and Kenya for the year ending January 2020.

Addressing reporters here yesterday, National Bureau of Statistics (NBS) Acting Director of

Population, Census and Social Statistics, Ruth Davison, said Tanzania's annual headline inflation rate for the month of January decreased to 3.7 per cent from 3.8 per cent recorded during the corresponding period in December 2019.

She said the decrease of the headline inflation explains that, the speed of price change for commodities for the year ended January, 2020 had decreased compared to the speed of price change recorded for the year ended December, 2019.

"The overall index went up to 117.60 in January, 2020 from 113.38 recorded in January, 2019," noted Ms Davison.

The Uganda Bureau of Statistics reported 3.4 per cent inflation in January, from 3.6 per cent reported in December, while Kenya National Bureau of Statistics reported a slight decrease of 5.78 per cent headline inflation rate from 5.82 recorded during the corresponding period in December 2019.

According to Ms Davison, in Tanzania, Food and Non-Alcoholic Beverages Inflation Rate for the month of January, 2020 decreased to 5.7 per cent from 6.3 per cent recorded in December, 2019.

"Annual Inflation Rate for food consumed at home and away from home for the month of January, 2020 also decreased to 6.4 per cent from 6.9 per cent recorded in December, 2019.

On the other hand, the 12-month index change for non-food products in January, 2020 has slightly

increased to 2.4 per cent from 2.3 per cent recorded in December, 2019. She added that the Annual Inflation Rate which excludes food and energy for the month of January, 2020 stagnated at 2.1 per cent as it was recorded in December, 2019.

"The National Consumer Price Index (NCPI) used to compute this type of Inflation Rate excludes food consumed at home and restaurants, petrol, diesel, gas, kerosene, charcoal, firewood and electricity.

Excluding food and energy which are the most volatile components in the total NCPI could provide a more stable Inflation Rate figure for Policy Makers," she noted.

The 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.

The NCPI weights are based on monetary expenditures relating to consumption for all households in the 25 geographic regions of Tanzania Mainland.

The index weights are based on expenditures of both urban and rural households derived from 2011/12 Household Budget Survey and the price reference period is December, 2015.