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Working Paper 163 - Food Prices and Inflation in Tanzania

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  • Christopher Adam
  • David Kwimbere
  • Wilfred Mbowe
  • Stephen O’Connell

Abstract

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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Bibliographic Info

Paper provided by African Development Bank in its series Working Paper Series with number 441.

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Date of creation: 26 Dec 2012
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Handle: RePEc:adb:adbwps:441

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  1. Angel J. Ubide, 1997. "Determinants of Inflation in Mozambique," IMF Working Papers 97/145, International Monetary Fund.
  2. Loening, Josef L. & Durevall, Dick & Ayalew Birru, Yohannes, 2009. "Inflation Dynamics and Food Prices in an Agricultural Economy: The Case of Ethiopia," Working Papers in Economics 347, University of Gothenburg, Department of Economics.
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