DEPRICIATION OF LOCAL CURRENCY RISE FOOD PRICE.
Depriciating local currency and rising food prices pushed up the annual headline inflation rate in May to 5.3 per cent, up from the previous month's 4.5 per cent, the National Bureau of Statistics (NBS) announced in Dar es Salaam yesterday.
According to the statistics body, the overall index went up to 157.86 in May, 2015 from 149.89 recorded in May, 2014. The bureau attributed the inflation rise to high food prices, citing some of the food items that had their prices soaring as cassava flour by 12.3 pc, meat by six pc, fish by 11.7pc, cowpea by 13.9 pc and beans by 4.2 pc, while restaurant food prices soared by 4.1 pc.
Addressing reporters, NBS Director of Population Census and Social Statistics Ephraim Kwesigabo said on the other hand that some of the non-food items that contributed to the increase of inflation in May include ladies wear by 3.5pc, gents wear by 5.6pc and accommodation services by 4.2pc.
He said food and non-alcoholic beverages inflation rate for the month of May, this year, has increased to 8.5pc from 7.1 recorded in April, this year.
“The increase of the Annual Headline Inflation rate for the year ending May, 2015 explains that, the speed of the price increase for commodities in the year ending May 2015 has slightly increased as compared to the speed of price increase recorded for the year ended April, this year,” he said.
He added that the annual inflation rate, which excludes food and non-energy items for the month of May, this year, has stagnated at 2.1pc as it was recorded in April, this year.
“Annual inflation rate for food consumed at home and away from home has increased to 8.4pc in May, 2015 from 7.2pc recorded in April, 2015; however, the 12 month index change for non-food products has slightly increased to 1. in May, 2015 from 1.0pc recorded in April, 2015,” he said.
He added that the annual headline inflation rates over the same period have shown a fairly stable trend from 6.5pc in May, 2014 to 5.3pc in May 2015.
He went on to explain that the purchasing power of the 100 shillings has decreased to 63/35 cents in May, 2015 from September, 2010.
On the other side, Mr Kwesigabo said the monthly headline inflation rate has increased by 0.4pc compared to an increase of 0.8 per cent recorded in April 2015.
“Some food items that contributed to such increase include; maize grains by 3.3pc, maize flour by 4pc, fresh fish by 2.1pc, cooking banana by 9.4pc, vegetables by 2.1pc, round potatoes by 3.8pc, beans by 3.3pc and cassava by 5.2pc.
“Some of non-food items, which have mainly contributed to such increase include; diesel by 3.2pc and petrol by 5.8pc,” he said.
Mr Kwesigabo also cited similar inflation increases in the neighbouring country of Uganda whereby inflation has increased to 4.90pc in May, 2015 from 3.60pc in March, 2015 while in Kenya; inflation rate has slightly decreased to 6.87pc in May, 2015 from 7.08 recorded in April, 2015.
