NBS: Headline inflation remains at 3.1 pc in May

By Polycarp Machira , The Guardian
Published at 08:14 AM Jun 11 2024
Director General of Tanzania National Bureau of Statistics (NBS), Dr Albina Chuwa speaks during the event.
Photo: Courtesy of NBS
Director General of Tanzania National Bureau of Statistics (NBS), Dr Albina Chuwa speaks during the event.

THE annual headline inflation rate for the month of May 2024 has stagnated at 3.1 percent as was recorded in April, 2024, National Bureau of Statistics (NBS) has revealed.

The stagnation of the headline inflation explains that, the speed of price change for commodities for the year ended May, 2024 remains the same as the speed that was recorded for the year ended April, 2024.

According to the NBS, the overall index went up from 112.72 recorded in May, 2023 to 116.18 recorded in May, 2024.

Food and non-alcoholic beverages inflation rate for May, 2024 has increased to 1.6 percent from 1.4 percent that was recorded in April, 2024.  On the other hand, annual Inflation Rate for all items without food and non-alcoholic beverages for May, 2024 has decreased to 3.7 percent from 3.9 percent that was recorded in April, 2024.

“NCPI has shown a relatively stable price movement from May, 2023 to May, 2024 ranging between 112.72 and 116.18. In addition, annual headline inflation rates over the same period have shown a stable trend that ranges between 3.0 percent and 4.0 percent” NBS said in a statement.

The national consumer price Index between April, 2024 and May, 2024 has increased by 0.1percent. The increase of the overall index is attributed to price increase for some food and non-food items.

Some food items that contributed to an increase of the index include; finger millet grains by 1.0 percent; Sunflower oil by 1.1 percent; vegetables by 1.6 percent; round potatoes by 4.1 percent; fresh cassava by 1.2 percent; dried beans by 4.2 percent and dried peas  by 1.2 percent.

Some non-food items that contributed to an increase of the index include footwear for men by 0.4 percent; footwear for women by 0.3 percent; firewood by 1.5 percent; charcoal by 2.4 percent; petrol by 2.0 percent and personal care by 0.3 percent.

However, inflation rate among EAC member states (Tanzania, Uganda and Kenya) has been stabilizing overtime, with Tanzania recording the lowest rate of 3.1 percent in the year ended May l, 2024 as compared to Uganda 3.6 and Kenya 5.1.

The recorded inflation rates in all three countries are within the EAC target of below eight percent per year and between three and seven percent for SADC member states.

Inflation numbers play a central part in accessing economic convergence within EAC and SADC blocks to realize integration pillars such as Common Market, Custom Union, Monetary Union and ultimately Political Federation.

The overall stability is highly attributed to stability witnessed in food items, whereas, Tanzania’s average food and non-alcoholic inflation rate from January to April, 2024 is recorded at 1.5 percent.