East African Business Week

DAR ES SALAAM, TANZANIA - The purchasing power of 100 Tanzania shilling has slumped drastically in one year from Tshs 82 in September 2010 as compared to Tshs 09 in September 2011, according to the latest compilation of the National Bureau of Statistics (NBS).
This was among observations by the NBS on the country's state and trends of the economy.
The NBS monthly report released last week revealed an annual headline inflation rate for the year ended September 2011 from 14.1 per cent registered in the year ended August 2011 to 16.8% in the year ended September 2011.
"This increase is highly attributed to the increase of both food and non-food prices. Food items that contributed to such increase include bread by 1.5%, pastry cook by 1.8%, maize grains by 5.1%, cassava flour by 2.2%, meat by 5.1%, fish by 6.0%, milk by 2.9%, cooking fat by 2.7%, fruits by 4.6%, sugar by 16.4 and fruit juices by 4.0%," the NBS report noted. Food items constitute over 22% of the items used to calculate the consumer price index.
These dismaying results are attributed to many factors including food inflation, increasing fuel prices globally, a rapidly depreciating shilling against the US dollar, poor infrastructures, and drought that has been brought about by climate change.
Commenting on the food and non-food inflation rates, the Bureau of Statistics noted a 12-month index change for food consumed at home and away from home went up to 21.3% in the year ended September 2011 as compared to 17.4% in the year ended August 2011.
 The 12-month index change for non food inflation increased to 11.4% in the year ended September 2011 from 10.2% registered in the year ended August 2011.