Tanzania Annual Inflation Increase to 5.5% in February 2017

The National Bureau of Statistics of Tanzania (NBS) indicates that the Annual Headline Inflation Rate slightly increased to 5.5% in February 2017, from 5.2% in January 2017.

The NBS explains that the speed of price increase for commodities in the year ending February, 2017 has increased as compared to the speed of price increase recorded for the year ended January, 2017.

The overall index went up to 106.97 in February, 2017 from 101.44 recorded in February, 2016. Food and Food and Non Alcoholic Beverages Inflation Rate for the Month of February, 2017 has increased to 8.7% from 7.6% recorded in January, 2017.

Food and Non Food Inflation Rates
Annual Inflation Rate for food consumed at home and away from home has increased to 9.3% in February, 2017 from 8.2% recorded in January, 2017.

In addition, the 12 month index change for non-food products has stagnated at 3.6% in February, 2017 as it was recorded in January, 2017.

Inflation Rate excluding Food and Energy
The Annual Inflation Rate which excludes food and energy for the month of February, 2017 has slightly decreased to 2.2% from 2.3% recorded in January, 2017.

Monthly Headline Inflation Rate
The Monthly Headline Inflation Rate for the month of February, 2017 has increased by 1.0% compared to an increase of 0.8% recorded in January, 2017.

The overall index has increased to 106.97 in February, 2017 from 105.92 recorded in January; 2017. The increase of the overall index is attributed to price increase of mainly food items.

Some food items that contributed to such an increase include; rice by 4.0%, maize grains by 12.2%, maize flour by 10.1%, sorghum grain by 5.6%, cooking banana by 9.5% and beans by 6.7%.

Purchasing Power
The purchasing power of 100 Tanzanian Shillings has reached TZS 93 and 48 cents in February, 2017 compared to TZS 94 and 42 cents in January, 2017.

Tanzania Inflation

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).

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.