Inflation in Z’bar eases to 4.05pc in July

ZANZIBAR: “ZANZIBAR’S annual inflation rate eased slightly in July this year, dropping to 4.05 per cent from 4.09 per cent recorded in June driven by falling prices of key food items, despite an overall increase in the Consumer Price Index (CPI).

The government statistician, Ms Salma Saleh Ali, said the moderation in inflation suggests a temporary relief for consumers, though rising costs in other sectors may continue to pose challenges.

The CPI rose to 116.86 in July this year, up from 112.31 in July last year. Food and non-alcoholic beverages inflation fell to 4.87 in July from 4.97 per cent in June.

On an annual basis, food inflation declined to 4.27 per cent from 4.38 in June, although food price indices climbed to 127.30 in July this year compared to 122.08 a year earlier.

Meanwhile, non-food inflation ticked up slightly to 3.88 per cent in July from 3.87 the previous month.

The items that contributed to easing inflation included different types of rice Mapembe (–11.68 per cent, Mbeya (–2.96 per cent), Basmati (–1.16 per cent), Jasmine (–7.18 per cent)—as well as wheat flour (–0.45 per cent), maize flour (–2.33 per cent) and fish products (–7.67 per cent).

Other contributing items were bananas (–21.88 per cent), brown sugar (–13.83 per cent), white sugar (–14.60 per cent), kerosene (–6.25 per cent), diesel (–5.43 per cent) and petrol (–2.88 per cent). On a monthly basis, headline inflation slowed to 0.18 per cent in July compared to 0.50 in June.

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Food and non-alcoholic beverages inflation for the month eased to 0.05 per cent, down from 1.14 in June. Key drivers of this monthly drop included bananas (–6.23 per cent), kerosene (–4.76 per cent) and diesel (–8.06 per cent). Commenting on the figures, Dr Estela Ngoma Hassan, an economist and lecturer at the State University of Zanzibar, said the decline was partly seasonal, as it coincides with the harvest period for some staple foods.

She stressed the importance of promoting productive agriculture to ensure food security and stable prices. From the Zanzibar Planning Commission, Mr Issa Masoud said the Commission is working closely with other institutions to strengthen the agricultural sector and maintain price stability.

Meanwhile, Mr Charles Mbinga, an economist with the Bank of Tanzania’s Zanzibar office, noted that controlling inflation not only benefits citizens directly but also contributes to overall economic growth and increases financial sector stability.