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Tanzania has recorded a slight increase in its inflation rate, driven primarily by higher food prices, according to the latest data from the National Bureau of Statistics (NBS). The inflation rate rose to 3.2% in February 2025, up from 3.1% in January, reflecting growing pressures on household budgets as the cost of essential goods continues to climb.
The rise in inflation has been attributed to notable price increases in key food staples. Rice prices surged by 3.8%, finger millet grains by 10.1%, maize grains by 1.8%, and sorghum flour by 4.0%. Other staples, such as maize flour and fresh beef, saw increases of 2.6% and 0.8%, respectively. The overall Consumer Price Index (CPI) rose by 0.6% between January and February, further highlighting the inflationary trend.
Additional food items that experienced price hikes include cooking oil (2.4%), fruits (2.6%), groundnuts (4.9%), vegetables (1.3%), and sweet potatoes (2.9%). Dried beans, lentils, and cassava flour also saw increases of 3.5%, 2.0%, and 1.4%, respectively. The NBS noted that the rise in food prices was partly driven by increased demand ahead of Ramadan, a period marked by shifts in food consumption patterns due to fasting, evening feasts, and charitable food donations.
The inflationary pressures extend beyond food, with the energy sector also experiencing significant price hikes. The Energy and Water Utilities Regulatory Authority (Ewura) announced new fuel price caps for March, revealing sharp increases in the cost of petrol, diesel, and kerosene. Petrol prices in Dar es Salaam rose to Tsh2,996 ($1.03) per liter, up from Tsh2,820 ($0.97) in February, marking a 6.27% increase. Diesel prices climbed by 6.73%, while kerosene saw the steepest rise at 12.02%, now retailing at Tsh3,036 ($1.05) per liter. Ewura attributed these increases to global fuel market trends and currency fluctuations.
The rising cost of living has prompted calls for government intervention to ease the burden on Tanzanian households. Prime Minister Kassim Majaliwa has urged traders to avoid unjustified price hikes during Ramadan, emphasizing the need for fairness and accountability in the marketplace. The government is also exploring measures to stabilize food and fuel prices, including boosting local production and enhancing supply chain efficiency.
Despite the challenges, Tanzania’s inflation rate remains relatively low compared to historical levels. The country has made significant progress in maintaining economic stability, with inflation consistently below the East African Community (EAC) target range of 3-7%. However, the recent uptick underscores the need for continued vigilance and proactive measures to address emerging pressures.
Economic analysts have highlighted the importance of diversifying Tanzania’s agricultural sector to mitigate the impact of price fluctuations. Investments in modern farming techniques, irrigation systems, and storage facilities could enhance food security and reduce dependency on imports, which are often subject to global market volatility.
The government’s efforts to manage inflation will be closely watched in the coming months, as Tanzanians grapple with the rising cost of living. Ensuring access to affordable food and energy remains a top priority, particularly for low-income households that are most vulnerable to economic shocks.
As Tanzania navigates these challenges, the focus remains on fostering sustainable growth and resilience. The slight rise in inflation serves as a reminder of the interconnectedness of global and local markets, and the importance of strategic planning to safeguard economic stability.