20 January 2013

Tanzania: Inflation Easing Slowly

DAR ES SALAAM, Tanzania's inflation dropping rate would take about 10 months to reach that of Kenya and Uganda as its easing has been termed as very slow at an average of 0.63% a month.

Going by data visualization for the three East African States, it shows that Dar es Salaam inflation for the last one year dropped by 7.6% from 19.7% of last January to 12.1% of last December, giving less than one per cent decline per month.

For instance at the beginning of last year, Kenya's inflation rates was 18.9% and Uganda 25.68% while Tanzania stood at 19.8%.

However, at the end of last December, Nairobi and Kampala reduced the inflation rates to 3.2% and 5.5% respectively compared to 12.1% of Dar es Salaam.

The University of Dar es Salaam Senior Economics Lecturer Dr. Jehovanness Aikael said the rate declining rate of about one per cent is 'authentic' since the figure was very high at 19.7% at the beginning of last year.

"The dropping rate has no concern at all, actually is authentic...it could be a concern if the rate dropped like Kenya and Uganda that is too fast to be realistic," Dr Aikael said last week through phone.

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