Inflation in Tanzania Reaches Double Figures

For the first time in a decade, Tanzania’s annual inflation rate has breached double digits to reach 11.6% for September. The development was due to soaring food prices, official data from the National Bureau of Statistics showed.

The bureaus’ report said it attributed the high inflation rate to the skyrocketing food prices countrywide. For instance, it said, in August the inflation rate was 9.8%. The recent surge therefore indicates a 1.8% increase within a month.

The report said that in February, the inflation rate was as 8.9%.

Honest Ngowi, who lectures at Mzumbe University in Morogoro, 200 km south from Dar es Salaam, told APA Tuesday that the government of Tanzania would not be able to bring down the inflation rate to seven percent by the end of the current financial year as planned.

“The seven percent goal by our government is now unrealistic since, under the current system, Tanzania has nothing in place to control food and fuel prices, the two most dominant factors in the country’s inflation basket,” said Ngowi

He said since the inflationary spiral was mainly on food, fuel and other production factors and not excess money supply in the market, it would be very difficult for the country to control it in the short-term.

The University of Dar es salaam’s Economic Research Bureau (ERB) official, Semboja Haji, concurred on the rate of inflation being increased.

He added: “Inflation will now be fluctuating between 10 and 12 percent. It requires magic for the government to bring it back to seven per cent.”

Source African Press Agency

Net News Publisher