Tanzania Inflation Will Probably Slow to Below 10% This Year

May 31 (Bloomberg) -- Tanzania’s annual inflation rate may drop to below 10 percent before December because of falling food prices, central bank Governor Benno Ndulu said in an interview.

“We could achieve single-digit inflation faster than December,” Ndulu said today from Arusha, Tanzania, where he is attending the African Development Bank annual meeting. “Food makes up 65 percent on the measure of Tanzania’s inflation.”

The International Monetary Fund said that inflation in the East African nation may slow to below 9 percent this year, after the rate peaked at 19.8 percent in December because of food and energy prices. The rate fell for a fourth straight month to 18.7 percent in April, the national bureau of statistics said May 15.

Tanzania plans to get a credit rating and sell its first Eurobond in 12 months, central bank Governor Benno Ndulu said today. The east African nation has hired Citigroup Inc. as an adviser, Ndulu said. Citigroup has told them they should issue at least $500 million in the first sale, he said.

To contact the reporter on this story: Andres R. Martinez in Johannesburg at amartinez28@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net