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|
|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|
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