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| Dr Mgimwa. |
Economists have raised concerns over country’s low capacity to manage
inflation, saying the inflation rate reduction leaves a lot to be desired.
National Bureau of Statistics (NBS) figures show that Tanzania’s
inflation fell slightly from 15.7 to 14.9 per cent in July and August, this year
respectively.
Economists argued that such decimal decrease rate would not result into
any meaningful improvements in the lives of ordinary people, noting that the
country should strive to attain single digit inflation rate.
“Those responsible in managing the inflation should not relax with this
slight improvement.
Just imagine, if some countrymen buy fuel at the price of 2,500/- per litre, it’s obvious that something needs to be done,” said Prof
Humphrey Moshi of the Economics department at the University of Dar es Salaam.
He stressed the need to hasten repairing the central railway line in
order to manage commodity prices in upcountry.
Mzumbe University lecturer, Dr Honest Ngowi, shared similar sentiments,
noting that the rate of inflation at 14.9 per cent was still too high if the
country is really determined to bring down the rate to single digit by end of
this financial year.
“The worry is about production trends. The relief on inflation here
depends on weather. In case infrastructure and agricultural production is
disturbed by natural hazards, it is very difficult to restore single digit
inflation,” said Dr Ngowi.
He said the current rate of inflation continued to have negative
impacts on the country’s economic performance, particularly in the banking
sectors were banks could not lend at lower rates.
“This has also negative
effects on the costs of living as the lives of many Tanzanians are unbearable,”
he said.
Source: The Citizen,http://www.thecitizen.co.tz, reported by Ludger Kasumuni
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