Tanzania Experiences Slight Inflation Increase Due to Higher Food Prices

Tanzania’s inflation rose to 3.2% in February 2025, primarily due to higher food prices. Key staples saw significant increases, while fuel prices also surged, prompting government responses. Authorities have warned traders against unjustified price hikes amid approaching Ramadan.

Tanzania has recently reported a minor increase in its headline inflation rate, rising from 3.1 percent in January to 3.2 percent in February 2025. This uptick is primarily attributed to rising food prices, as indicated by the National Bureau of Statistics (NBS). Noteworthy increases in staple food prices include a rise of 3.8 percent for rice and 10.1 percent for finger millet grains, along with increases for maize grains (1.8 percent), sorghum flour (4.0 percent), and others.
In addition to these staples, the Consumer Price Index (CPI) experienced a 0.6 percent increase between January and February, underscoring the ongoing inflationary pressures in the market. Several other food products also saw price hikes, including cooking oil (2.4 percent), various fruits (2.6 percent), and potatoes (2.5 percent). Analysts suggest that the price increases are partly due to heightened demand as the Ramadan period approaches, which affects food consumption patterns significantly.
In light of the rising food prices, Prime Minister Kassim Majaliwa has called upon traders to refrain from excessive price increases during the fasting month. Concurrently, inflationary pressures are evident in the energy sector, as the Energy and Water Utilities Regulatory Authority (Ewura) announced new fuel price caps for March.
The latest figures indicate notable increases in fuel prices, with petrol in Dar es Salaam rising to Tsh2,996 ($1.03) per litre, diesel at Tsh2,885 ($0.99), and kerosene surging to Tsh3,036 ($1.05) per litre. These changes reflect a 6.27 percent rise for petrol, 6.73 percent for diesel, and a significant 12.02 percent increase for kerosene.
James Mwainyekule, Ewura’s Director General, identified global fuel market fluctuations and currency variations as primary factors contributing to these price hikes. Despite these challenges, it remains crucial to monitor trends in both food and energy prices in order to mitigate potential economic impacts.

In summary, Tanzania’s inflation rate has slightly increased due to rising food prices and elevated energy costs. The NBS reports significant price hikes in essential food items leading into Ramadan, prompting government intervention to prevent unjustified increases. Correspondingly, the fuel sector has also witnessed substantial price rises. As these economic trends evolve, it is vital for authorities to address the underlying causes to ensure stability.

Original Source: www.zawya.com