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
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.