ANNUAL headline inflation rate decreased slightly to 6.4 per cent in June from the previous month's 6.5 per cent, the National Bureau of Statistics (NBS) said in Dar es Salaam.
According to the statistics body, however, the overall index rose to 148.98 points last month from 140.00 recorded in the corresponding month last year.
Addressing reporters, NBS Director of Population Census and Social Statistics Ephraim Kwesigabo said that the decrease of annual headline inflation rate for the year ending June, 2014 explains that the speed of price increase for commodities on June this year has decreased compared to the speed of price increase recorded in May this year.
Explaining that the decrease of the overall index is mainly attributed to the price decrease of food items, he cited some of the food items that contributed to the decrease as rice by 3.0 per cent, maize grains by 12.3 per cent and maize flour by 3.5 per cent.
Others are fresh cassava by 8.9 per cent, sweet potatoes by 9.1 per cent, dried sardines by 4.1 per cent, citrus fruits by 14.4 per cent, vegetables by 1.2 per cent and round onions by 2.5 per cent.
Food and non-alcoholic beverage inflation decreased to 8.1 from 8.7 per cent between May and June, 2014 while the annual inflation rate, which excludes food and energy for the month of June has stagnated at 3.5 per cent as it was recorded in May this year.
"On average, energy, fuels, food and non-alcoholic beverages have had a higher upward trend over the period compared to other items but energy and fuels portrayed unstable price movements compared to other items," Mr Kwesigabo said.
He added that the annual inflation rate for food consumed at home and away from home has decreased to 8.7 per cent in June from 9.3 per cent in May this year.
Mr Kwesigabo went on to explain that the purchasing power of 100/- also increased to 67/12 in June 2014 from September, 2010 compared to 66/72 recorded in May 2014.
He also cited similar inflation decreases in neighbouring countries whereby in Uganda; inflation has further decreased to 4.9 per cent in June from 5.4 in May this year while in Kenya it has slightly increased to 7.39 per cent in June from 7.30 recorded in May this year.