National Bureau of Statistics

NOVEMBER 2002 INFLATION RATE STAGNATES

Inflation rate for November 2002 has remained the same as was for October 2002. According to the National Consumer Price Index (NCPI), inflation rate for November 2002 is 4.5 percent in relation to the figures for November the previous year. The November 2002 inflation has remained stagnant when compared with the October 2002 inflation figure, which was 4.5 percent as measured on a year-to-year basis. However, as measured on a month-to-month basis that is between October 2002 and November 2002 inflation rate went up by 1.0 percent.

The overall Index increased from 224.1 in October 2002 to 226.3 in November 2002. Prices of both food and non-food items had gone up. Items that had increased prices were rice, maize grain, maize flour, wheat flour, bread, beef, chicken, goat meat, fresh fish, cooking oil, beans, cowpeas, cassava and potatoes. Non-food items, which had increased prices, were kerosene, charcoal, clothing and footwear, cough syrup, toilet soap, face and shaving creams, secondary school uniforms, wristwatches and umbrellas. However, prices of furniture, bed sheets, iron (charcoal), kerosene stoves, torch batteries, insecticides, water buckets and broom heads had gone down. Details of the National Consumer Price Index for the month of November 2002 by consumption groups are tabulated below:

NATIONAL CONSUMER PRICE INDEX (ALL-URBAN)

NOVEMBER 2002 (Base: December 1994 = 100)

	MAIN GROUP	Weight	Nov. 2002	Oct. 2002	% Change Oct. 2002 to Nov. 2002	Nov. 2001	% Change Nov. 2001 to Nov. 2002
1.	Food	71.2	231.1	228.4	+ 1.2	224.4	+ 3.0
2.	Drinks and Tobacco	4.4	184.2	184.2	0.0	175.6	+ 4.9
3.	Rents	3.9	202.2	202.1	0.0	199.3	+ 1.5
4.	Fuel, Power and Water	4.7	339.4	335.3	+ 1.2	271.1	+25.2
5.	Clothing and Footwear	3.7	203.8	203.0	+ 0.4	192.3	+ 6.0
6.	Furniture & Household Equipment	2.5	199.4	201.0	- 0.8	190.3	+ 4.8
7.	Household Operations & Maintenance	1.5	163.0	164.2	- 0.7	157.9	+ 3.2
8.	Personal Care & Health	2.2	153.3	151.9	+ 0.9	146.2	+ 4.9
9.	Recreation & Entertainment	1.2	175.0	175.0	0.0	171.3	+ 2.2
10.	Transportation	1.2	247.9	247.9	0.0	239.6	+ 3.5
11.	Education	1.5	204.7	203.2	+ 0.7	197.4	+ 3.7
12.	Miscellaneous Goods and Services	2.0	159.4	158.5	+ 0.6	151.4	+ 5.3
TOTAL - ALL ITEMS INDEX		100.0	226.3	224.1	+ 1.0	216.6	+ 4.5

The yearly price increases i.e. annual rate of inflation (November to November 1996 - 2002) for the last six years as well as movement in group indices from November 1999 to November 2002 are shown in the diagrams below:

The diagram below depicts the purchasing power of the shilling in terms of consumption at different times. From November 1996, the value of 100 shillings (and thus the purchasing power) has been decreasing steadily, declining to 62 shillings and 50 cents in November 2002.

The National Consumer Price Index (NCPI) covers prices collected in 20 urban towns (Regional Towns) in Mainland Tanzania. Prices are gathered for 212 items. All prices collected are the prevailing market prices.

The NCPI is a statistical measure of goods and services bought by persons in urban areas, including all expenditure groups and both families and single persons. It measures changes in price - not - expenditure - which are the most important cause of changes in the cost of living.