Tanzania Inflation Rate at Over 1-Year High of 3.7%

The annual inflation rate in Tanzania increased to 3.7 percent in June 2019 from 3.5 percent in the previous month. It was the highest inflation rate since April last year, amid rising prices of food, transport and housing & utilities.

Year-on-year, cost continued to advance for food & non-alcoholic beverages (2.3 percent vs 2.2 percent in May), namely food consumed at home and away from home (4.3 percent vs 3.9 percent); transport (4.8 percent vs 4.1 percent), owing to fuel prices hikes; and housing & utilities (8.9 percent vs 8.8 percent), including electricity and other fuels for use at home with petrol and diesel (11 percent vs 10.5 percent). Additional upward pressure stemmed from alcoholic beverages & tobacco (4.2 percent vs 3.4 percent); recreation & culture (3.4 percent vs 3.2 percent) and communication (1.0 percent vs -1.1 percent).

On the other hand, inflation slowed for clothing & footwear (3.1 percent vs 3.7 percent); furnishings (4.1 percent vs 4.3 percent); restaurants & hotels (4.8 percent vs 4.9 percent); miscellaneous goods & services (2.4 percent vs 2.5 percent); health (1.8 percent vs 2.0 percent) and education (1.8 percent vs 2.1 percent).

On a monthly basis, consumer prices decreased 0.2 percent, after increasing 0.4 percent in the preceding month, mainly due to lower prices of non-food items. Some non-food items that contributed the most to such decrease include gas (2.1 percent); charcoal (2.8 percent); mobile phones (3.7 percent); hand bags (0.5 percent) and clothing (0.2 percent).

Annual core inflation, which excludes food and energy, edged down to 3.4 percent from 3.5 percent in the previous month.

Tanzania Inflation Rate at Over 1-Year High of 3.7%

Tanzania National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
7/8/2019 12:04:37 PM