Author: SYLIVESTER DOMASA
AfricaPress-Tanzania: THE Annual Headline Inflation Rate for the month of August, 2020 stagnated at 3.3per cent as was recorded during the corresponding period in July, 2020, the National Bureau of Statistics (NBS) said.
With the recent figure, Tanzania continues recording the lowest annual headline inflation rate in comparison to the neighbouring countries of Kenya and Uganda in the East African Community (EAC), according to NBS Acting Director of Population, Census and Social Statistics, Ruth Minja.
Addressing a news conference in Dodoma, Ms Minja said, the Uganda Bureau of Statistics reported a slight decline of 4.6 per cent inflation rate in August 2020 from 4.7 per cent reported in July, while Kenya National Bureau of Statistics reported that inflation equally stagnated at 4.36 per cent headline inflation rate as was recorded during the corresponding period in July 2020.
According to her, Tanzania’s stagnation of the headline inflation explains that, the speed of price change for commodities for the year ended August, 2020 remained constant like that recorded for the year ended July 2020.
“The overall index went up to 119 .87 in August, 2020 from 116.01 recorded in August, 2019 ,” noted Ms Minja.
According to Ms Minja, in Tanzania, food and non-alcoholic beverages inflation rate for the month of August, 2020 decreased to 3.7 per cent from 3.8per cent that was recorded in July, 2020.
“Annual inflation rate for food consumed at home and away from home for the month of August, 2020 decreased to 4.8per cent from 4.9per cent recorded in July, 2020,” she noted.
The National Consumer Price Index (NCPI) used to compute this type of inflation rate and excludes food consumed at home and restaurants, petrol, diesel, gas, kerosene, charcoal, firewood and electricity, the NBS official further revealed.
“The Annual Inflation Rate which excludes food and energy for the month of August, 2020 decreased to 2.5per cent from 2.6per cent recorded in July 2020,’’ she added.
The NCPI measures the change over time in the cost of a fixed basket of goods and services that are purchased by a representative sample of households in Tanzania.
A basket includes a list of 278 goods and services of which 97 are Food and Non-Alcoholic Beverages and 181 are Non-Food items that are being priced on monthly basis.
The NCPI weights are based on monetary expenditures relating to consumption for all households in the 25 geographic regions of Tanzania Mainland.
The index weights are based on expenditures of both urban and rural households derived from 2011/12 Household Budget Survey and the price reference period is December, 2015.
