TANZANIA: BEER PRICE INCREASE PUSHES UP INFLATION

Tanzania’s inflation rate has increased to 6.5 per cent in July compared to 6.4 per cent recorded in June, National Bureau of Statistics announced yesterday.

The increase is mainly attributed to beer whose price was raised in July following a tax increase in the government budget. The government increased the excise duty to 20 per cent on beers starting July.

Beer contributed 4.4 per cent to July inflation rate followed by garments, especially trousers for men at 3.4 per cent, according to Ephraim Kwesigabo, the director of Population, Census and Social Statistics at the NBS.

“So, this time the inflation rate was mainly contributed by an increase in the prices of non-food items,” said Mr Kwesigabo.

Prices increased by 0.1 per cent during the month compared to a decrease of 0.6 per cent recorded in June.

Other non-food items that contributed to the inflation rate increased with their percentage in brackets include cigarettes (2.1 per cent), girls’ dresses (1.2 per cent), dry cleaning services (2.3 per cent) rent paid by tenants (2.5 per cent), carpets and other floor coverings (2.3 per cent) as well as charcoal (1.2 per cent).

The July period was also characterised by Eid el Fitr celebrations that might have provoked high cloth prices.

The Purchasing Power of the consumer’s Sh100 decreased to Sh67 and 04 cents in July, 2014 from September, 2010.

It measures the change in the value of consumer goods and services that the currency could buy at different periods.

Inflation Rate in Uganda decreased to 4.3 per cent in July from 5.0 per cent in June while in Kenya it slightly increased to 7.67 per cent from 7.39 per cent recorded in June.

The Citizen