Food prices push up inflation to 6.4 pc

The National Consumer Price Index (NCPI) released by NBS has attributed the changes largely to the increase of food prices.

According to NBS a weighting of 38.5 per cent, food and nonalcoholic beverages are the biggest drivers of inflation in the country.

The annual headline inflation rate for the year ending March 2017 explains that, the speed of price increase for commodities in the year ending March, 2017 has increased as compared to the speed of price increase recorded for the year ended February, 2017.

The overall index went up to 108.44 in March, 2017 from 10.93 recorded in March, 2016. According to NBS, food and non alcoholic beverages inflation rate for the month of March, has increased to 11.0 per cent from 8.7per cent recorded in February, 2017.

Moreover, the annual inflation rate for food consumed at home and away from home has increased to11.7per cent in March, 2017 from 9.3per cent recorded in February, 2017.

The 12 month index change for non-food products has stagnated at 3.6per cent in March, 2017 as it was recorded in February, 2017.

Also the annual inflation rate, which excludes food and energy for the month of March, this year has stagnated at 2.2 per cent, this is in accordance to February, this year’s records. On monthly headline, NBS shows that the March’s headline inflation has increased by 1.4 per cent compared to 1.0 per cent of February, this year.

Moreover, the overall index has increased to 108.44 in March, 2017 from 106.97 recorded in February, 2017. According to NBS the increase is attributed to the increase of price of some food and non-food items. Some of food items that have contributed to the increase of inflation include sugar by 3.9 per cent, maize flour by 6. 7per cent and sorghum grain by 4.1 per cent.

Others in the list include banana by 4. 6 per cent, cassava fresh by 7.7 per cent, vegetables by 4 per cent and dried sardines by 3.2 per cent. Moreover, non-food items that contributed to the increase are cooking gas by 11.9 per cent petrol by 4.6 per cent and diesel by 3.2 per cent.

Furthermore, the NCPI identified that the purchasing power of Tanzania shilling has been going down.

According to the report, the shilling reached 92 and 21 cents in March, this year compared to 93 and 48 cents in February, 2017.