Tanzania's headline annual inflation decelerated to a 10-month low of 5.9% in October from 6.6% the month before due to a slower growth in food prices, data from the country’s National Bureau of Statistics (NBS) showed. Compared to the previous month, Tanzania’s consumer prices fell 0.2% in October, following a 0.4% increase in September.
Prices of food and non-alcoholic beverages, which have a 47.8% weight in the CPI basket used to measure inflation, climbed 7.1% y/y last month, slowing from an 8.5% growth in September. The y/y growth in transport prices (9.5% weight) also eased – to 1.6% from 2.0%. On the other hand, the costs for housing, water, electricity, gas and other fuels (9.2% weight) rose 10.8% y/y, accelerating from a 10.7% growth in September.
The annual core inflation rate, which excludes the most volatile components food and energy, edged up to 3.2% last month from 3.1% in September.
The International Monetary Fund (IMF) forecast in May that Tanzania's inflation would gradually slow to the central bank’s 5% medium-term target. In its October World Economic Outlook, the IMF saw Tanzania’s average annual inflation falling from 7.9% in 2013 to 5.9% this year and further to 4.9% next year.
| y/y inflation rate | Oct-14 | Sep-14 | Oct-13 | weight |
| Headline inflation | 5.9% | 6.6% | 6.3% | 100.0 |
| Food inflation (combining food consumed at home and food consumed in restaurants) | 7.0% | 8.3% | 7.3% | 51.0 |
| Non food inflation | 4.6% | 4.6% | 6.1% | 49.0 |
| Energy inflation (combining electricity and other fuels for use at home with petrol and diesel) | 11.6% | 12.1% | 10.6% | 5.7 |
| Core inflation (all items less food and energy) | 3.2% | 3.1% | 5.7% | 43.3 |
| Source: National Bureau of Statistics |
Related Articles
Kenya-based Spiro appoints new group CEO after raising $215mn for EV expansion across Africa
Kenya-based African electric mobility company Spiro has appointed Anant Badjatya as group chief executive officer, the company announced on June 9, as it seeks to accelerate expansion across its ... more
South African court rules Bitcoin qualifies as "capital", "money" under exchange controls
The South Gauteng High Court in Johannesburg has ruled that Bitcoin constitutes both “capital” and “money” under South Africa’s exchange-control framework, in a landmark judgment that could ... more
Ghana to evacuate 161 citizens from Cambodia as fake deportation scare spreads
Ghana has evacuated 85 citizens from Cambodia and is arranging the return of another 76, authorities said, amid concerns sparked by a fake online notice falsely claiming African nationals faced ... more