Tanzania Annual Inflation Slightly Increase to 5% in December 2016

The National Bureau of Statistics of Tanzania (NBS) indicates that the Annual Headline Inflation Rate slightly increased to 5% in December 2016, from 4.8% in November 2016.

The NBS notes that the increase of the overall index is mainly attributed to price increase of food items.

Some food items that contributed to such an increase include maize grains by 12.6%, maize flour by 12.2%, sorghum grain by 8.9%, cassava flour by 3.5%, lentils by 12.5%, cooking bananas by 4.7% and dry beans by 3.3%.

Food and Non-Alcoholic Beverages Inflation Rate recorded in December 2016 increased to 7% from 6.2% recorded in November 2016.

The Annual Inflation Rate for food consumed at home and away from home increased to 7.4% in December 2016 from 6.4% recorded in November 2016.

In addition, the 12-month index change for non-food products remained stable at 3.8% in December 2016.

The Annual Inflation Rate, excluding food and energy, decreased to 2.5% in December 2016, compared to 2.6% in November 2016.

The purchasing power of 100 Tanzanian Shillings reached TZS95 and 20 cents in December 2016 compared to TZS95 and 98 cents in November 2016.

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, slightly increasing to 5.5% in June, and again, falling to 5.1% in July, 4.9% in August, and 4.5% in September and October 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.