The Government has affirmed that the inflation rate will always continue to be in the single digit, at least between 3.0 and 5.0 percent, a rate that is in the East African Community agreement.
Minister for Finance and Planning, Dr. Mwigulu Nchemba said in the National Assembly on Wednesday when responding to a question from Special Seats lawmaker, Cecilia Pareso (CHADEMA), who had requested to know when the Government would curb inflation that had surged since December last year.
Statistics from the National Bureau of Statistics (NBS) show that the Annual Headline Inflation Rate had increased from 3.2 percent that was recorded in March, 2021 to 3.3 percent in April, 2021.
In the NBS website, it was stated that the increase of headline inflation rate means that the speed of price change for commodities for the year ended April, 2021 had increased compared to the speed that was recorded for the year ended March, 2021.
The overall index went up from 100.63 recorded in April, 2020 to 103.95 in April, 2021. When responding to the MPs question, Dr. Nchemba said that inflation went up in January 2021 to an average of 3.5 percent from 3.2 percent that was recorded during the corresponding period in December 2020.
"This was caused by scarcity of some products in the market, something that usually occurs during the beginning of the year," he noted.
Dr. Nchemba was also quick to point out that the annual headline inflation rate went down to 3.3 percent in February 2021, meaning that products had started to be obtained in the market at lower cost in the market compared to during the corresponding period in January 2021.
The Minister told the House that the major aim of maintaining inflation rate at the single digit aims at ensuring that different government strategies remained intact, including distribution of food items to different destinations as well as strengthening of the budget policy.