Bank of Tanzania (BoT) has said twelve month headline inflation eased for two months in a row, reaching 4.4 percent in November 2017 from 5.1 percent in the preceding month.
BoT said in its monthly economic review for month of December 2017 that inflation was lower than the country’s medium-term target of 5.0 percent, and far below the maximum of 8.0 percent set as a convergence criterion in the East African Monetary Union Protocol.
The decrease in inflation was largely driven by a slowdown in prices of food component, on month-to-month basis, headline inflation was 0.5 percent in November 2017 compared with1.1 percent in the corresponding month in 2016.
Annual non-food inflation was 2.9 percent in November 2017 compared with 3.0 percent in October 2017, while on month-to-month, it was 0.3 percent compared with 0.4 percent in November 2016.
BoT said annual energy and fuel inflation picked up to11.1 percent in November 2017 from 10.6 percent in October 2017.
On month-to-month basis, energy and fuel the review show that inflation was1.4 percent in November 2017 compared with 1.0 percent in November 2016
Annual inflation for all items excluding food and energy, which is a proxy for core inflation, slowed to 1.4 percent in November 2017 from 1.7 percent in October 2017and 2.4 percent in the corresponding period in 2016.
According to review, core inflation was 0.1 percent in November 2017 compared with 0.3 percent in the corresponding month in 2016.
It further said a twelve-month inflation for food and non-alcoholic beverages decreased to 7.4 percent in November 2017 from 8.8 percent in the preceding month.
On month-to-month basis, food and non-alcoholic inflation was 0.8 percent in November 2017 compared with 2.2 percent in the corresponding month in 2016 the midst of seasonal food harvests in many parts of the country, food stocks held by the National Food Reserve Agency (NFRA) increased at varying magnitudes since July 2017.
In November 2017, food stocks increased by 4,105.7tonnes to 93,354 tonnes1from the stocks heldin October 2017 following purchase of 4,681 tonnes of maize.
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