Tanzania's annual inflation rate soared to 19.2% in November
from 17.9% the previous month, propelled by steep food and fuel
prices, the state-run National Bureau of Statistics said late
Friday.
According to NBS, the East African nation's inflation rate has
been rising since late last year, hitting a 15-year high in
November, mainly due to inadequate food supply occasioned by
drought.
"Food and nonalcoholic beverages inflation rate has increased to
26.1% in November 2011 from 24.0% recorded in year ended October
2011," NBS stated, adding food crops that contributed to the
soaring inflation include rice, corn, wheat and sugar.
With the inflation rate soaring for the thirteenth straight
month in November, fears are rife that the East African nation
could be plunged in unrest, according to political analysts.
The Tanzanian government is facing an ultimatum from the
opposition to fix the economy and address soaring commodity prices
or face North Africa-like protests.
Tanzania, Africa's third largest gold producer is also grappling
with acute power shortages, blamed in lower water levels at its
main hydro power stations. Power shortages have compelled the state
power utility, Tanzania Electricity Supply Co. to embark on
nation-wide rationing as it seeks to balance demand and supply.
The country was hit by several months of drought late last year
and earlier this year, affecting water levels at its hydro power
stations and hitting its rain-fed agriculture.
Africa Barrick Gold Ltd. (ABG.LN),the country's largest gold
producer has been compelled to acquire backup diesel-fired thermal
power plants for its four gold mines in the country due to the
unreliable power supply.
The gold-mining company said last week that it would not be able
to meet its 2011 gold production target due to power outages.
Other gold mining companies operating in Tanzania include South
Africa-based Anglogold Ashanti Ltd. (AU) and Australia's Resolute
Ltd. (RES.AU).
-By Nicholas Bariyo, Dow Jones Newswires; 256-75-2624615
bariyonic@yahoo.co.uk