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Tanzania Tightens Belt Against Inflation

FILE - A view of the skyline of Tanzania's port city of Dar es Salaam. Taken 7.12.2013

Tanzania will reduce liquidity (money supply) over the rest of 2022 in order to tackle a surge of inflation, the central bank's Monetary Policy Committee (MPC) said on Saturday.

"The MPC approved the Bank of Tanzania to reduce the speed of expanding liquidity in the remainder of 2022, in order to tame inflationary pressures from the demand side, while safeguarding the growth of the economy," an MPC statement said, without offering further detail.

Inflation in the East African country hit 4.4% in June, the latest month for which data was available.

Tanzania's National Bureau of Statistics reports that prices climbed at a faster pace for transport (8.9 percent vs 7.2 percent in May); food & non-alcoholic beverages (5.9 percent vs 5.5 percent) and housing & utilities (4.6 percent vs 4.3 percent). On a monthly basis, consumer prices were up 0.5 percent, the same rate reported for May.

The MPC warned in its statement that inflation could rise further because of prices globally for food, fuel, and fertilizer.