Tanzania Inflation Rate Slows To 5-Month Low of 5.4%


Consumer prices in Tanzania rose 5.4 percent year-on-year in June of 2017, easing from 6.1 percent in the previous month. It is the lowest inflation rate since January, amid a slowdown in prices of food and transport. In June, grain exports were restricted to stem the rise in prices and to face food shortages, the main consequences of the severe drought. On a monthly basis, consumer prices went down 0.1 percent compared to a 0.2 percent increase in May.

Year-on-year, prices slowed for: food and non-alcoholic beverages (9.6 percent vs 11.6 percent in May); transport (0.4 percent vs 1.3 percent); restaurants and hotels (0.7 percent vs 0.9 percent); miscellaneous goods and services (3.7 percent vs 4 percent); health (2.2 percent vs 2.9 percent) and recreation and culture (0.8 percent vs 1.2 percent). In addition, cost increased at the same pace for furniture & household equipment (3.2 percent) and alcoholic beverages & tobacco (3 percent) and declined further for communication (-1 percent vs -0.8 percent).

In contrast, prices advanced faster for housing & utilities (7.1 percent vs 4.6 percent), clothing & footwear (3.8 percent vs 3.7 percent) and education (0.8 percent vs 0.7 percent).

Annual core inflation, which excludes food and energy increased 1.9 percent, easing from a 2.2 percent rise in the previous month.

On a monthly basis, consumer prices went down 0.1 percent, following a 0.2 percent gain in May, mainly attributed to a decrease in cost of maize grain (-5.1 percent); maize flour (-2.4 percent); cassava flour (-1.9 percent); oranges (-2.4 percent); sardines (-3.2 percent); vegetables (-5.7 percent); beans (-1.8 percent) and round potatoes (-6.2 percent).

Tanzania Inflation Rate Slows To 5-Month Low of 5.4%


National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
7/10/2017 11:38:47 AM