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This runaway inflation must be checked

This runaway inflation must be checked

By one simple definition, inflation refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI (consumer price index) which measures consumer prices, and GDP (Gross Domestic Product) deflator, which measures inflation in the whole of the domestic economy.

A number of factors have led to the runaway inflation, including higher food and fuel prices, a worsening current account deficit and a slide in its currency to record lows against the US dollar. The government has been grappling with this situation, which has sent the prices of essential commodities such as food and fuel skyrocketing to unprecedented levels, which has strained the pockets of many.

In January, the government expressed hope that the economy will grow at around 7 per cent and that inflation will be brought down to single digit by June 2012. Although efforts to achieve that continue, with several parameters to show that, the situation on the ground as of now is still cause for worry.

The National Executive Committee (NEC) of CCM has directed the government to look for solutions to skyrocketing prices of food and other essential commodities to make life easier to the people. These are truly tough times for most Tanzanians as prices of all foodstuffs, including rice, maize flour and other cereals and legumes have shot up to unprecedented levels.

In Dar es Salaam, for example, a kilo of maize flour sells at between 900/- and 1,500/-, thrice the cost hardly three years ago, while a kilo of rice is between 1,800/- and 3,400/- depending on quality and source. CCM-NEC has also called on the government to review some taxes, such as Value Added Tax (VAT) on foodstuffs, housing rent and transport fare.

Heads should now roll in more earnest than ever before in the quest for a remedial solution to this situation that is making life tougher for the people. Simply put, the inflation burden is just too tough to bear.

Transparency is the way forward

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Author: EDITOR

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