Tan­za­nia’s year-on-year in­fla­tion down to 5.1pc

Drop in cost of liv­ing mea­sure in Oc­to­ber linked to slower rise in com­mod­ity prices

Business Daily (Kenya) - - REGIONAL BUSINESS - Min­is­ter said an­nual in la­tion to be con­tained at ive per cent by mid next year

Tan­za­nia’s in­fla­tion slowed to 5.1 per cent year-on-year in Oc­to­ber from 5.3 per cent a month ear­lier due to slower rise in com­mod­ity prices, the sta­tis­tics of­fice said on Wed­nes­day.

The food and non-al­co­holic bev­er­ages in­fla­tion rate fell to 8.8 per cent in Oc­to­ber from 9.3 per cent in Septem­ber, the staterun Na­tional Bu­reau of Sta­tis­tics (NBS) said in a state­ment.

Food has the largest weight in the bas­ket of goods and ser­vices used to cal­cu­late Tan­za­nia’s in­fla­tion.

Month-on-month in­fla­tion fell by 0.1 per cent in Oc­to­ber com­pared to an in­crease of 0.02 per cent pre­vi­ously.

Tan­za­nia Fi­nance and Plan­ning min­is­ter Philip Mpango said an­nual head­line in­fla­tion was ex­pected to be con­tained at five per cent by mid next year in line with the coun­try’s mid-term

tar­get. Tan­za­nia’s econ­omy is ex­pected to ex­pand by 7.1 per cent in 2018, slightly up from an es­ti­mated seven per cent this year, Mr Mpango said on Tues­day, un­der­pinned by faster ex­pan­sion in com­mu­ni­ca­tions, trans­port and con­struc­tion sec­tors.

Mr Mpango fur­ther trimmed the gov­ern­ment’s growth fore­cast for 2017 from 7.1 per cent to seven per cent. The fore­cast had al­ready been trimmed from 7.4 per cent in May.

The East African na­tion has pledged to boost pub­lic in­vest­ment in in­fra­struc­ture, in­clud­ing a stan­dard gauge rail­way, new roads and ex­pand­ing its ports. “There ap­pears to have been an over­all de­te­ri­o­ra­tion Food has the largest weight in the bas­ket of goods and ser­vices used to cal­cu­late Tan­za­nia’s in la­tion.

in busi­ness sen­ti­ment due to per­ceived risks re­sult­ing from the unpredictability of pol­icy ac­tions,” the World Bank said in its eco­nomic up­date on Tan­za­nia re­leased on Mon­day.

The bank cut its eco­nomic growth fore­cast to 6.6 per cent this year from an ear­lier es­ti­mate of around seven per cent.

Mr Mpango said the gov­ern­ment planned to raise spend­ing by 2.4 per cent to $14.50 bil­lion (Sh1.5 tril­lion) in its 2018/19 fis­cal year bud­get, with a con­tin­ued fo­cus on pub­lic in­fra­struc­ture in­vest­ments and in­dus­tri­al­i­sa­tion of the econ­omy.

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