The National Bureau of Statistics of Tanzania (NBS) indicates that the Annual Headline Inflation Rate slightly increased to 5.2% in January 2017, from 5% in December 2016.
The NBS notes that the increase of the overall index is attributed mainly to price increase of food items.
Some food items that contributed to such an increase include maize grains by 16.0%, maize flour by 10.0%, rice by 2.6%, beans by 6.3%, cooking bananas by 5.8%, cocoyam by 5.3% and sweet potatoes by 2.5%.
Food and Non-Alcoholic Beverages Inflation Rate recorded in January 2017 increased to 7.6% from 7% recorded in December 2016.
The Annual Inflation Rate for food consumed at home and away from home increased to 8.2% in January 2017 from 7.4% recorded in December 2016.
In addition, the 12-month index change for non-food products decreased to 3.6% in January 2017 from 3.8% in December 2016.
The Annual Inflation Rate, excluding food and energy, decreased to 2.3% in January 2017, compared to 2.5% in December 2016.
The purchasing power of 100 Tanzanian Shillings reached TZS94 and 42 cents in January 2017 compared to TZS95 and 20 cents in December 2016.
Tanzania’s Annual Average Headline Inflation Rate (from January to December, 2016) has decreased to 5.2% in 2016 from 5.6% recorded in 2015 (from January to December, 2015).
After a peak of 6.8% in December 2015, inflation in Tanzania has been steadily decreasing, reaching 5.1% in April 2016, then falling to 4.9% in August, 4.5% in September and October 2016, and slightly increasing to 5% in December 2016.
This decrease was mainly attributed to the decrease in prices for food items. Annual Average Inflation Rate for food Items decreased to 7.6% in 2016 from 8.6% in 2015.
The Bank of Tanzania (BOT) Monetary Policy Statement of June 2016 indicates that the BOT target is to keep inflation close to 5%.
Tanzania’s inflation rate is projected to remain stable at 5% throughout H1 2017 and to remain constant in the medium term.