19 June 2017

Tanzania: Zanzibar Inflation Balloons to Nine Months High

Photo: Daily Monitor
Zanzibar.

Zanzibar has registered a nine-month high inflation that climbed to 7.1 per cent in April. On month-to-month basis the inflation in March was 6.4 per cent.

Bank of Tanzania data showed that the inflation climbed to highest point last January to over 10 per cent but descended to almost 3.0 per cent last November.

However, the upward trend resumed last December to climb to the highest point in April. The island economy, which is dominated by tourism, and cloves exports, registered a lowest inflation rate in March 2015 of around 1.0 per cent.

According to Bank of Tanzania, the surge of inflation in April 2017 was caused by a rise in prices of food and non-food items, in particular, maize flour, rice, cooking bananas and sugar. Some non-food items whose prices rose include fuel--kerosene, petrol and diesel.

Highest price increase was recorded in maize flour, 54.8 per cent, followed by yellow cooking bananas, 34.3 per cent, kerosene, 28.8 per cent, sugar, 27.1 per cent and petrol 18.8 per cent.

On other hand some food and non-food items including wheat flour, edible cooking oil, and cement registered a decrease in prices by 1.4 per cent, 3.2 per cent and 7.7 per cent, respectively, partly on account of adequate supply.

Overall, inflation was lower compared to some sub-group items, including housing, water, electricity, gas and other fuels, whose inflation almost doubled mainly as a result of rise of fuel pump prices.

On month-to-month basis, headline inflation was higher by 2.1 percentage points in April compared to 0.5 registered last March with food and fuels accounting for the rise.

As regard to annual non-food, inflation rose to 7.3 per cent in April from 5.8 per cent recorded last April while on monthto- month basis, the registered inflation was 2.3 per cent in April compared to 0.2 per cent recorded last April.

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