March Inflation rates fall as prices maintain stability

INFLATION rate for last month has decreased to 3.9 per cent from 4.1 per cent recorded in February this year on decline of food and nonfood prices.

The National Bureau of Statistics (NBS) Population Census and Social Statistics Director, Mr Ephraim Kwesigabo said in Dar es Salaam yesterday that the last time inflation to decrease at this level was in 2004 when it decreased to 3.6 per cent. Food and non-alcoholic beverages inflation rate decreased to 4.7 per cent from 5.4 per cent recorded in February 2018.

He said the overall index went up to 112.70 in March, 2018 from 108.44 recorded in the corresponding month last year. CPI has shown a relatively stable movement of prices from March, 2017 to March, this year.

In addition, Annual Headline Inflation Rates over the same period have decreased tremendously from 6.4 per cent in March, 2017 to 3.9 per cent in March, 2018. The overall index has increased to 112.70 in March, 2018 from 111.33 recorded in February, 2018.

The increase of the overall index is attributed to price increase for both food and non-food items. Some food items that contributed to such an increase include rice by 3.8 per cent, maize grains by 4.1 per cent, fresh fish by 2.6 per cent and vegetables by 5.3 per cent and cassava flour by 1.9 per cent and sardines by 4.3 per cent. On the other hand, non- food items that contributed to such an increase include; kerosene by 1.2 per cent, charcoal by 2.7 per cent and diesel by 3.1 per cent.

The Annual Inflation Rate which excludes food and energy for the month of March, 2018 has slightly decreased to 1.6 per cent from 1.7 per cent recorded in February, 2018. For other countries in the East African Community, in Uganda inflation has decreased to 2.0 per cent from 2.1 percent, in Kenya decreased to 4.18 per cent from 4.46 per cent of the ended February this year

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