Releasing the monthly statistics yesterday, NBS’s director of Population Census and Social Services, Ephraim Kwesigabo said it was the lowest inflation rate since series began in 1999, mainly due to prices of food and non-alcoholic beverages and miscellaneous goods and services.
Inflation rate in the country averaged 7.15 per cent from 1999 until 2018, reaching an all time high of 19.80 per cent in December of 2011 and a record low of 3.40 percent in January of 2003.
Kwesigabo noted that the decrease of headline inflation explains that, the price change of commodities in the year ending July ,2018 has slightly decreased compared to the speed of price change recorded in the year ended June,2018.
He said on year-on-year, cost eased for food and non-alcoholic beverages by 2.8 per cent compared to 3.4 per cent in June while miscellaneous goods and services decreased by 1.2 percent compared to 1.4 percent in the last month.
The rate of inflation in education reduced to 2.5 per cent compared to 2.6 per cent in the same period as recreation and culture recorded a 0.4 per cent decrease compared to 0.5 per cent.
Additionally, prices of communication dropped faster from -2.7 per cent compared to -2.6 per cent in the previous month. The overall index went up to 112.44 in July, 2018 from 108.85 recorded in July, 2017.
“On a monthly basis, consumer prices declined to 0.3 percent, after falling from 0.4 per cent in June. Main downward pressure came from food and non-alcoholic beverages, 1.3 per cent, health -0.5 percent and communication -0.1 percent,” he said.
Annual inflation rate for food consumed at home and away from home has decreased to 3.0 per cent in July, 2018 from 3.8 per cent recorded in June, 2018. In addition, the 12 month index change for non-food products in July, 2018 has increased to 4.2 per cent recorded in June, 2018.
The annual inflation rate which excludes food and energy for the month of July, 2018 has stagnated at 1.6 per cent as it was recorded in June, 2018.
On the other hand, cost increased further for transport to 2.5 per cent up from 1.7 per cent while housing and utilities also recorded 12.3 per cent compared to 12.0 per cent in June.
According to the director, clothing and footwear also increased to 2.4 per cent compared to 2.2 per cent, furnishings and household equipment increased to 2.6 per cent up from 2.4 per cent in June while restaurants and hotels recorded 0.8 per cent compared to 0.7 per cent in the new month. Alcoholic beverages and tobacco increased to 0.8 per cent compared to 0.3 per cent in June.
The annual inflation rate in Tanzania decreased to 3.4 per cent in June 2018 from 3.6 per cent in May. It was the lowest inflation rate since February 2003, as prices rose less mainly for transport, housing and utilities.