RISING FOOD PRICES PUSH INFLATION UPWARDS

NBS Director of Population Census and Social Statistics
Ephraim Kwesigabo.

Rising food prices pushed up the annual headline inflation rate to 4.3 per cent in March, a slight increase from the previous month’s 4.2 per cent, the National Bureau of Statistics (NBS) announced in Dar es Salaam.

The statistics body attributed the inflation rise to the increase in food prices, citing some of the food items that contributed to the increase as rice by 19.9 per cent, cassava flour by 8.3 per cent, meat by 6.2 per cent, fish by 15.5 per cent, sugar by 4.4 per cent and beans by 5.3 per cent.

Addressing reporters, NBS Director of Population Census and Social Statistics Ephraim Kwesigabo, said that food and non-alcoholic beverages inflation rate for the period under review has increased to 5.9 per cent from 4.9 per cent recorded in February 2015.

“The increase of the Annual Headline Inflation rate for the year ending February, 2015 explains that the rate of the price increase for commodities in the year ending March 2015, has slightly increased compared to the price increase rate recorded for the year ending February 2015,” he said.

He also said that the overall index went up to 155.88 in February 2015 from 149.49 recorded in February 2014. Mr Kwesigabo added that the annual inflation rate, which excludes food and nonenergy for March 2015 has decreased to 2.5 per cent from 2.7 per cent recorded in February 2015.

“Annual inflation rate for food consumed at home and away from home has increased to 6.1 per cent in March, 2015 from 5.1 per cent recorded in February 2015, however, the 12 month index change for non-food products has decreased to 2.0 per cent in March, 2015 from 3.0 per cent recorded in January, 2015,” he notified.

He further explained that the purchasing power of 100/- has decreased to 64/15 cents in February, 2015 from September 2010.

On the other side, Mr Kwesigabo said the monthly headline inflation rate has increased by 0.7 per cent compared to an increase of 1.6 per cent recorded in February 2015.

He mentioned some of the food items that contributed to such increase include; rice by 5.0 per cent, fish by 2.5 per cent, citrus fruits by 1.7 per cent, vegetables by 5.3 per cent, beans by 5.0 per cent and sugar by 1.6 per cent.

Mr Kwesigabo also cited similar inflation increases in neighbouring countries whereby in Uganda, inflation has increased to 1.90 per cent in March 2015 from 1.4 per cent in February 2015.

And in Kenya, it has also increased to 6.31 per cent in March 2015 from 5.61 per cent recorded in February 2015.

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