Persistent oil price increases and prevailing food shortages in the wake of prolonged drought are making it hard for Tanzania to attain inflation to what is within its yearly projection.

The Bank of Tanzania said in its mid-year review of the monetary policy statement available on Friday that the inflation target for 2005/2006 is unlikely to be attained due to these factors.

"Given the drought and continued high oil prices, the annual inflation target of 4.0 percent by June 2006 will be difficult to achieve," said the central bank review.

Annual inflation was 4.2 percent in June last year and it rose to 5.4 percent in January this year, 0.4 percentage points up from December.

The central bank, however, added that it had managed to contain inflationary pressures and to maintain monetary stability in the first half of the current financial year.

Source: Xinhua