Working Paper 163 - Food Prices and Inflation in Tanzania
Christopher Adam (),
Wilfred Mbowe and
Authors registered in the RePEc Author Service: Stephen A. O'Connell ()
Working Paper Series from African Development Bank
We develop an empirical representation of inflation in Tanzania for the decade from 2001, estimating ‘multiple-determinant’ single-equation models for month-on-month headline inflation and its principal components (food, energy and core inflation). Our results suggest that while supply-side 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.
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