Tanzania Annual Inflation Further Decrease to 5% in August 2017

Tanzania Inflation August 2017

The National Bureau of Statistics of Tanzania (NBS) indicates that the Annual Headline Inflation Rate decreased to 5% in August 2017 from 5.2% recorded in July 2017.

NBS explains that the decrease is the result of the speed of price change for commodities in the year ending August 2017 that has further decreased compared to the speed of price change recorded in July 2017.

After a peak of .4% in April and May 2017, the  Annual Headline Inflation Rate has been falling month after month, mostly because of slower rise in food prices, the NBS explains.

The overall index went up to 108.46 in August 2017 from 103.28 recorded in August 2016.

Food and Non-Food Inflation Rates

Food and Non-Alcoholic Beverages Inflation Rate for the Month of August 2017 has decreased to 8.6% from 8.9% recorded in July 2017.

Annual Inflation Rate for food consumed at home and away from home has decreased to 9.1% in August 2017 from 9.3% recorded in July 2017.

In addition, the 12-month index change for non-food products has stagnated at 3.1% in August 2017 as it was recorded in July 2017.

Inflation Rate Excluding Food and Energy
The Annual Inflation Rate which excludes food and energy for the month of August 2017 has decreased to 1.8% from 2.2% recorded in July 2017.

Monthly Headline Inflation Rate
The Monthly Headline Inflation Rate for the month of August 2017 has decreased by 0.4% compared to a decrease of 0.2% recorded in July 2017.

The overall index has decreased to 108.46 in August 2017 from 108.85 recorded in July 2017.

The decrease of the overall index is mainly attributed to a price decrease of food items.

RELATED:  Tanzania Annual Inflation Decrease to 5.4% in June 2017

Some food items that contributed to such decrease include; rice by 1.2%, maize grains by 1.2%, maize flour by 1.6%, dried sardines by 3.4%, vegetables by 1.2%, beans by 3.2%, potatoes by 3.5% and cooking bananas by 2.4%.

On the other hand, some non-food items that contributed to such decrease include; diesel by 2.2%, petrol by 2.4% and electronic equipment by 1.6%.

Purchasing Power
The purchasing power of 100 Tanzanian Shillings has reached TZS 92 and 20 cents in August 2017 compared to TZS 91 and 87 cents recorded in July 2017.