EAC
JUMUIYA YA AFRIKA MASHARIKI
EAST AFRICAN COMMUNITY
MARCH, 2022
EAST AFRICAN COMMUNITY
EAC REGULATIONS FOR COMPILING HARMONISED CONSUMER PRICE INDICES (HCPI)
MARCH, 2022
ii | EAC REGULATIONS FOR COMPILING HARMONISED CONSUMER PRICE INDICES (HCPI)
EAC REGULATIONS FOR COMPILING HARMONISED CONSUMER PRICE INDICES (HCPI) MARCH, 2022 ISBN: 978-9987-786-10-7
Copyright 2022, East African Community. All rights reserved to EAC Secretariat, P.O.Box 1096, Arusha, Tanzania Tel: +255 (0)27 216 2100 Fax: +255 (0)27 216 2190 Email: eac@eachq.org; Website: www.eac.int
March, 2022 | iii
FOREWORD
The East African Community (EAC) is the regional inter-governmental organisation of the Republics
of Kenya, Uganda, the United Republic of Tanzania (URT), Republic of Rwanda, Republic of Burundi
and Republic of South Sudan with its Secretariat in Arusha, Tanzania. The Treaty for establishment
of the EAC was signed on 30 November 1999 and came into force on 7 July 2000 following its
ratification by the original three Partner States namely, Kenya, Uganda and Tanzania. The Republic
of Rwanda and the Republic of Burundi acceded to the EAC Treaty on 18 June 2007 and became full
Members of the Community with effect from 1 July 2007. The Republic of South Sudan became full
member of the community with effect from April, 2016.
The EAC aims at widening and deepening co-operation among the Partner States in, among others,
political, economic and social fields for their mutual benefit. To this extent, the EAC have identified the
following four stages to achieve the community: a) Customs Union - this involves the strengthening
of the free trade area where Partner States adopt a common trade policy with common external
tariffs. The Customs Union was established in 2005; b) Common Market - in addition to Customs
Union, this is where there is free movement of capital, labour, goods and services and capital
between Partner States. The commons market was established in 2010; c) Monetary Union - this is
the most advanced stage of the economic integration process where countries have their different
political, economic, and monetary and fiscal policies. All Partner States signed the East African
Monetary Union (EAMU) Protocol in November 2013 with a ten years transition period to a Single
currency in 2024; and d) Political Federation of the East African States – this is the ultimate aim of
the community. Partner States have put in place a process of fast-tracking attainment of this stage.
The East African Monetary Union (EAMU) Protocol requires that the Partner States’ macroeconomic
environment converge based on an agreed convergence criteria. On the monetary side, the criteria
require a performance ceiling on headline inflation of 8%; and an indicative ceiling on core inflation of
5% . To maintain a sound Monetary Union and guarantee comparability across the Partner States, it
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is prudent that these indicators are compiled using a common methodology and similar compilation