Title

Food Prices And Inflation In Tanzania

Document Type

Article

Publication Date

2016

Published In

Journal Of African Development

Abstract

We develop an empirical representation of inflation in Tanzania for the decade from 2001, estimating 'multiple-determinant' single-equation models for headline inflation and its major components (food, energy and core inflation). Our results suggest that while supplyside factors, including yield variability and international price arbitrage, play a major role in determining domestic food and fuel inflation (which together account for almost 60 percent of the total CPI basket), demand-side factors amenable to policy intervention by the monetary authorities anchor core inflation.

Keywords

Tanzania, inflation, core inflation, error-correction, supply shocks, monetary policy

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