Economists have projected further
significant drop in Tanzania’s headline year-on-year inflation rate that
slowed to 15.7 per cent in July from 17.4 per cent recorded in June.
“If you look at what has happened in the
first and second quarters, inflation is likely to fall for eighth
straight months because of dropping food prices,” said Tanzania
Securities Chief Executive Officer Moremi Marwa in Dar es Salaam over
the weekend.
“The
decrease (of headline inflation rate) explains that the general increase
of prices for commodities decreased in July, 2012,” said NBS.
Inflation skyrocketed to 19.7 per cent
in January but has since been going down. The Consumer Price Index of
food and energy were significant factors.
“When production costs of
those two go down, the situation improves especially with energy where
we are seeing today that there is less reliance on the more expensive
resources .....rainfall stability also means food prices are on the down
side,” said Mr Moremi.
A University of Dar es salaam don, Dr
Lenny Kasonga said the inflation rate has been falling in recent months
on the back of very tight monetary policies as well as base effects due
to comparison with January’s inflation.
“We should expect a gradual slowdown in
inflation,” he said. NBS's statistics however show that the overall
index went up to 130.19 in July, this year from 112.51 recorded in July,
the previous year.
The bureau says food and non alcoholic beverages
inflation rate has decreased to 20.8 per cent in July this year from
23.5 per cent recorded last month.
It thus states that excluding food and
energy which are the most volatile components in the total Consumer
Price Index could provide a more stable inflation rate figure for policy
makers.
Source: The Daily News,http://www.dailynews.co.tz, reported by Orton Kiishweko
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