Low regional inflation rate reflects fall in food prices

Tuesday July 18 2017

Kenya recorded a drop compared to its EAC

Kenya recorded a drop compared to its EAC counterparts, of 2.49 per cent, from 11.7 per cent the previous month to 9.21 per cent in June 2017, spurred by a slowdown in prices of fresh food and fuels.  PHOTO | FILE 

By BEATRICE MATERU
More by this Author

East African states have recorded a drop in annual headline inflation for the year ending June 2017, mostly due to a decline in food and non-beverage prices.

Tanzania recorded 5.4 per cent year-on-year inflation in June 2017, from 6.1 per cent in the previous month.

Kenya recorded a drop compared to its EAC counterparts, of 2.49 per cent, from 11.7 per cent the previous month to 9.21 per cent in June 2017, spurred by a slowdown in prices of fresh food and fuels. 

Uganda recorded a 6.4 per cent year-on-year inflation in June, from the 7.2 per cent recorded in May, attributed to a decline in annual food crops inflation of 18.1 per cent as at June 2017 compared with 23.1 per cent as at May.

According to the Uganda Bureau of Statistics, the lower annual food crops inflation was due to vegetable price inflation that declined to 9.6 per cent for the year ending June 2017 from 15.5 per cent registered during the year ended May 2017 and fruits inflation that declined to 32.4 per cent from 37.2 per cent recorded in May.

Year-on-year

In June 2017, Rwanda’s Consumer Price Index (CPI) increased by 4.8 per cent year-on-year, easing for the fourth consecutive month from 8.1, 7.7, 7.3 and 6.5 per cent year on year recorded in February, March, April and May 2017, respectively.

“Food prices have been on a downward trend in recent months but continued to be the main driver of changes to the CPI in June 2017,” said Ephraim Kwesigabo, Tanzania’s National Bureau of Statistics director of population, census and social statistics.

Tanzania’s year-on-year inflation rate for food stood at 9.8 per cent in June, 2017 from 11.8 per cent recorded in May. In addition, the 12-month index change for non-food products increased to 3.1 per cent in June from 3.0 per cent recorded in May.

In contrast, the annual inflation rate, which excludes food and energy, eased to 1.9 per for June from 2.2 per cent recorded in May 2017.

The monthly headline inflation rate for June, has decreased by 0.1 per cent compared with an increase of 0.2 per cent in May. The overall index decreased to 109.10 in June from the 109.26 recorded in May.